No. 1/2014:Causal evidence on quality of life and population size using historical mines


Abstract

I investigate the causal effect of endogenous population size on quality of life. Quantity and quality of consumer amenities would increase with urban scale if not offset by congestion effects. To deal with endogeneity, I utilize a quasi-experimental design where I exploit the exogenous spatial distribution of mineral resources with Norwegian historical mines from the 12th till the 19th century. The findings suggest a positive urban scale effect that pass multiple tests of confounding factors. This evidence suggest divergence between countryside and city regions in quality of life. Keywords: quality of life, urban scale, historical mines.