Publication

This paper develops a comprehensive wealth index for cities that measures their endowment with environmental, energy, social, human, and economic capital stocks. The authors apply this index to the 100 largest autonomous cities in Germany, and find the following: (i) a good economic performance does not need to come at the cost of environmental degradation; (ii) clear regional differences exist between West and East Germany and between North and South Germany; and (iii) social preferences reflected in the comprehensive wealth index account for roughly half of the variation in housing rents, which reflect individual willingness to pay for living in a certain city.