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Transportation and Quality of Life: Evidence from Denmark

Jesper Hybel () and Ismir Mulalic ()
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Jesper Hybel: Aalborg University, Department of the Built Environment, Postal: Thomas Manns Vej 23, 9220 Aalborg Øst, Denmark

No 14-2021, Working Papers from Copenhagen Business School, Department of Economics

Abstract: This paper investigates the importance of transportation for quality of life in Denmark. We first calibrate a simple general equilibrium model to analyse how local wage levels, housing costs, and commuting costs vary across urban areas as well as to construct a quality of life index that measures a representative household's willingness to pay for local amenities. We find that the quality of life is high in large cities. Wages and rents are also substantially higher in the urban areas that are dense. We then regress the quality of life index on observed amenities to infer how much quality of life is associated with transportation. Our empirical results suggest that the quality of the public transport system is particularly important for the quality of life.

Keywords: Quality of life; Rent gradients; Wage gradients; Commuting costs; Amenities; Transportation (search for similar items in EconPapers)
JEL-codes: H40 J30 O52 R10 R40 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2021-09-20
New Economics Papers: this item is included in nep-eur, nep-geo, nep-hap, nep-lma, nep-res, nep-tre and nep-ure
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Handle: RePEc:hhs:cbsnow:2021_014