This paper presents the first hedonic general-equilibrium estimates of quality-of-life and firm productivity differences across Canadian cities, using data on local wages and housing costs. These estimates account for the unobservability of land rents and geographic differences in federal and provincial tax burdens. Quality of life estimates are generally higher in Canadas larger cities: Victoria, Vancouver are the nicest overall, particularly for Anglophones, while Montreal and Ottawa are the nicest for Francophones. These estimates are positively correlated with estimates in the popular literature and may be explained by differences in climate. Toronto is Canadas most productive city; Vancouver, the overall most valued city.
QED Working Paper Number
1287
quality of life
firm productivity
cost-of-living
firm productivity
compensating wage differentials
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