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Empirical Analysis Of The Quality Of Life

Decent Essays
As is evident in observing Table 1 there is no set guidelines in academic literature which specifies the criteria of amenities which apply to the calculation of quality of life. This can result in data, which when compared directly, yields vastly different results. Table 2 is a graph which Roback(1982) derived, comparing her results with those of Liu (1976). Roback also included in the equation a ranking based on population for comparability sake (Roback 1982, p.1275). It can be seen in the table that the different amenities used to calculate quality of life yielded rankings that do not match up. Liu’s data ranks Seattle-Everett in first, yet Roback’s method put that city in nineteenth, which is practically last. Though the data were…show more content…
Although there remains some large disparities, Calgary and Vancouver remain within the top three rankings of these cities in in all cases. IV. Discussion The concept of quality of life has been shown to have a range of applications and implications, yet there has not been a clearly defined protocol for calculating it in economic studies. The use of different indices and methods of calculation create vastly differing results in some cases. Though the hedonic model has been used primarily for quality of life calculations, issues do arise when we attempt to apply this model to areas in which equilibrium is not reached. This fact leads to the preference for a more arbitrary indicators approach (Lambiri 2007, p.20) In order to measure quality of life accurately and objectively in economic literature the household and firm perspective must both influence the data. This factor is very important because households and firms will have different real estate pricing, which will yield a different marginal valuation of amenities (Brueckner 2011, p.242). This process explains why it is found that firms can prefer some areas that households dislike. Any changes quality of life values of either households or firms will shift the labour supply and demand curves (Gabriel and Rosenthal 2004, p.439). This means that quality of life variables can in effect alter land rents and wages in an area, which will further change quality of life
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