Working Paper: NBER ID: w18103
Authors: David Albouy; Fernando Leibovici; Casey Warman
Abstract: We present hedonic general-equilibrium estimates of quality-of-life and productivity differences across Canada's metropolitan areas. These are based off of the estimated willingness-to-pay of heterogeneous households and firms to locate in various cities, which differ in their wage levels, housing costs, and land values. Using 2006 Canadian Census data, our metropolitan quality-of-life estimates are somewhat consistent with popular rankings, but find Canadians care more about climate and culture. Quality-of-life is highest in Victoria for Anglophones, Montreal for Francophones, and Vancouver for Allophones, and lowest in more remote cities. Toronto is Canada's most productive city; Vancouver is the overall most valuable city.
Keywords: Quality of Life; Productivity; Amenities; Canadian Cities
JEL Codes: J31; J61; Q51; R1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| local amenities (R53) | quality of life (I31) |
| local amenities (R53) | productivity (O49) |
| quality of life (I31) | nominal wages (J31) |
| productivity (O49) | labor costs (J30) |
| quality of life (I31) | cost of living (J30) |
| productivity (O49) | non-labor costs (J32) |
| language preferences (J15) | city preferences (R23) |
| wage differentials (J31) | compensating differentials for local amenities (J31) |