ABSTRACT
In the preceeding Chapters we have crudely measured the value of regional differences in the quality of life. As a result of that analysis, we have shown that the value of the different mix of services flowing from the physical and social environment in different areas can add as much as fifty percent to individuals' real total income. That is the extreme: the difference between a large northeastern congested and polluted city with serious crime problems and a small city in a high amenity rural area in the West. In general we have established that the value of the differences in QOL among areas is substantial. The question we wish to deal with in this chapter is just what economists mean when they assert that the value of the differences in the QOL between two areas is, say, $1500 per capita per year.
