Implicit Amenity Prices and the Location of Retirees in England and Wales

Posted: 29 Jun 2010

See all articles by Geoff Stewart

Geoff Stewart

University of Southampton - Division of Economics

Jeo Lee

Isle of Man International Business School

Date Written: September 14, 2009

Abstract

General equilibrium models in which compensation for local amenities occurs in both housing and labour markets have been widely used to generate implicit amenity prices and regional quality of life indices. An implication and prospective test of such models is that individuals who are outside the labour market have an incentive to locate in regions where amenities are capitalised into wages. In this paper we construct a measure of the extent of amenity capitalisation into wages for each county in England and Wales. We then test the multimarket amenity model by applying this measure to county-level data on the location of retirees. Our results provide strong support for the model.

Keywords: location decisions, retirees, quality of life

JEL Classification: I31, R1

Suggested Citation

Stewart, Geoff and Lee, Jeo, Implicit Amenity Prices and the Location of Retirees in England and Wales (September 14, 2009). Available at SSRN: https://ssrn.com/abstract=1632047

Geoff Stewart (Contact Author)

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom

Jeo Lee

Isle of Man International Business School ( email )

The University Centre
Old Castletown Road
Douglas Isle of Man, IM2 1QB
United Kingdom

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