The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Urban Environment and Quality of Life

  • Matthew E. Kahn
Reference work entry


Urban quality of life is a key determinant of where the educated choose to live and work. Recognizing the importance of attracting the high-skilled, many cities are investing to transform themselves into ‘consumer cities’. This essay examines the supply and demand for non-market urban quality of life. It provides an overview of hedonic methods often used to estimate how much households pay for non-market urban attributes such as temperate climate and clean air.


Compensating differentials Congestion Crime Hedonic functions Internal migration Pollution Population density Quality of life Urban environment and quality of life Urban growth Urbanization 

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Matthew E. Kahn
    • 1
  1. 1.