This paper uses a hedonic equilibrium model to provide a quality of life based ranking of 13 Canadian cities. The empirical results show that the quality of life based rankings and the variations of the indices are affected by the differences in the distribution of housing characteristics across cities. The results place Calgary at the top of the ranking followed by Vancouver, Edmonton, and Winnipeg. These four cities remain on the top of the ranking in the same order when the housing characteristics are held constant across cities.
Get full access to this article
View all access options for this article.
References
1.
D'Agostino, R.B. and Pearson, E.S. (1973) Tests for departures from normality: empirical results for the distribution of b2 and b1i, Biometrica , 60, pp. 613-622.
2.
Blomquist, G., Berger, M. and Hohen, J. (1988) New estimates of quality of life in urban areas , The American Economic Review, March, pp. 89-107.
3.
Blomquist, G., Berger, M. and Waldner, W. (1985) Quality of life: ranking urban areas using a wage and rent based index, Working Paper No. E-85-85, Department of Economics, University of Kentucky.
4.
Box, G.E.P., and Cox D.R. (1962) An analysis of transformations, Journal of the Royal Statistical Society, Series B, pp 211-243.
5.
Brown, J.N. and Rosen, H.S. (1982). On the estimation of structural hedonic price models, Econometrica, May, pp. 765-768.
6.
Epple, D. (1984) Closed form solutions to a class of hedonic equilibrium models, Carnegie-Mellon University, mimeograph.
7.
Epple, D. (1987) Hedonic prices and implicit markets: estimating demand and supply functions for differentiated products, Journal of Political Economy, 95, pp. 59-80.
8.
Getz, M. and Huang, Y.C. (1978) Consumer revealed preference for environmental goods, Review of Economics and Statistics, 60, pp. 449-458.
9.
Giannias, D.A. (1989) Consumer benefit from air quality improvement, Applied Economics, 21, pp. 1099-1108.
10.
Giannias, D.A. (1991) Housing quality differentials in urban areas, Journal of Urban Economics, 29, pp. 166-181.
11.
Giannias, D.A. (1996) Net social benefit per household of marginal environmental changes in Southern Ontario, Environmental Monitoring and Assessment, 43, pp. 37-47.
12.
Goodman, A. (1978) Hedonic prices, price indices, and housing markets , Journal of Urban Economics, 12, pp. 471-484.
13.
Gyourko, J. and Tracy, J. (1991) The structure of local public finance and the quality of life, Journal of Political Economy, 99, pp. 774-805.
14.
Liu, B.-C. (1976) Quality of Life Indicators in U.S. Metropolitan Areas. New York: Praeger Publishers .
15.
Nordhaus, W.D. and Tobin, J. (1972) Is growth obsolete?, in Economic Research: Retrospect and Prospect, vol. 5 Economic Growth, pp. 21-49. New York: Columbia University Press (for National Bureau of Economic Research).
16.
Polinsky, A.M. and Rubinfeld, D.L. (1977) Property values and the benefits of environmental improvements: theory and measurement, in: L. Wingo and A. Evans (Eds) Public Economics and the Quality of Life, pp. 154-180. Baltimore : John Hopkins University Press (for Resources for the Future).
17.
Pollak, R.A., and Wales J.J. (1981) Demographic variables in demand analysis, Econometrica, 49, pp. 1533-1551.
18.
Quigley, J.M. (1982) Nonlinear budget constraint and consumer demand: an application to public programs for residential housing, Journal of Urban Economics, 20, pp. 177-201.
19.
Ridker, R.G. and Henning, J.A. (1967) The determinants of residential property values with special reference to air pollution, Review of Economics and Statistics, 49, pp. 246-257.
20.
Roback, J. (1982) Wages, rents, and the quality of life, Journal of Political Economy, 90, pp. 1257-1277.
21.
Roback, J. (1988) Wages, rents and amenities: differences among workers and regions, Economic Inquiry, 26, pp. 23-41.
22.
Rosen, S. (1979) Wages-based indexes of urban quality of life, in: P. Mieszkowski and M. Straszheim (Eds) Current Issues in Urban Economics, pp. 74-104. Baltimore: Johns Hopkins University Press .
23.
Rosen, S. (1974) Hedonic prices and implicit markets: product differentiation in pure competition, Journal of Political Economy, 82, pp. 34-55.
24.
Tinbergen, J. (1959). On the theory of income distribution, in: L. H. Klassen, L. M. Koyck and H. J. Witteveen (Eds) Selected Papers of Jan Tinbergen, pp. 243-263. North-Holland .
