Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Savolainen links antisocial behavior in childhood to disadvantage and poverty in adulthood

Norton et al. put dollar value on relief from chronic pain for Americans age 50+

Seefeldt says TANF restrictions may limit program's help for poor Americans

More News

Highlights

Paula Fomby to succeed Jennifer Barber as Associate Director of PSC

PSC community celebrates Violet Elder's retirement from PSC

Neal Krause wins GSA's Robert Kleemeier Award

U-M awarded $58 million to develop ideas for preventing and treating health problems

More Highlights

Sometimes close is good enough: The value of nearby environmental amenities

Archived Abstract of Former PSC Researcher

Schmidt, Lucie G., and Paul Courant. 2006. "Sometimes close is good enough: The value of nearby environmental amenities." Journal of Regional Science, 46(5): 931-951.

An extensive empirical literature exists, showing that variations in region-specific amenities can account for persistent differences in real wages across regions. However, this literature has considered only amenities in the same location as the household. This paper argues that environmental amenities at some distance from but accessible to urban areas may lead to negative compensating wage differentials. We use a general equilibrium framework and data from the 1995 Current Population Survey to calculate implicit amenity prices based on measures of distance to environmental amenities. Our results suggest that amenities outside the metropolitan area do generate compensating wage differentials, as workers are willing to accept lower wages to live in accessible proximity to "nice" places. This implies that these places provide a positive externality to those communities that find them accessible. The estimated effects are quantitatively important, suggesting that these externalities should be taken into account in policy making.

DOI:10.1111/j.1467-9787.2006.00491.x (Full Text)

Browse | Search : All Pubs | Next