Abstract
In order to assess differences in living conditions across German regions we apply the hedonic approach of Rosen (Current issues in urban economics, 1979) and Roback (J Polit Econ 90(6):1257–1278, 1982) to land-price and wage differences across Germany’s counties. Employing a recent survey of more than half a million Germans on a wide range of social and political issues we confirm that differences in amenities give rise to substantial differences in land prices. With regard to wages, however, we find only little effects of amenities. Relying on the land-price effects we assess the quality of life in each of the German counties and provide a comprehensive ranking.
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