Amenities and the Attractiveness of New Zealand Cities

56 Pages Posted: 8 Nov 2019

See all articles by Kate Preston

Kate Preston

Motu Economic and Public Policy Research

David C. Maré

Motu Economic and Public Policy Research Trust; University of Waikato - Economics

Arthur Grimes

Motu Economic and Public Policy Research Trust

Stuart Donovan

VU University Amsterdam

Date Written: June 30, 2018

Abstract

Using theoretically consistent measures derived within the urban economics literature, we compile quality of life and quality of business indicators for 130 ‘cities’ (settlements) from 1976 to 2013, using census rent and wage data. Our analyses both include and exclude the three largest cities (Auckland, Wellington, Christchurch). Places that are attractive to live in tend to be sunny, dry and near water (i.e. the sea or a lake). Since the mid-1990s, attractive places have also had relatively high shares of the workforce engaged in education and (to a lesser extent) health. Attractive places have high employment shares in the food, accommodation, arts and recreation service sectors; however (unlike for education and health) we find no evidence that quality of life is related to changes in employment share for these sectors. The quality of business is highest in larger cities, and this relationship is especially strong when the country’s three largest cities are included in the analysis.

Keywords: amenities, quality of life, quality of business, rents, wages, New Zealand, settlements

JEL Classification: R11, R12, R23

Suggested Citation

Preston, Kate and Maré, David C. and Grimes, Arthur and Donovan, Stuart, Amenities and the Attractiveness of New Zealand Cities (June 30, 2018). Available at SSRN: https://ssrn.com/abstract=3477045 or http://dx.doi.org/10.2139/ssrn.3477045

Kate Preston

Motu Economic and Public Policy Research ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

David C. Maré (Contact Author)

Motu Economic and Public Policy Research Trust ( email )

PO Box 24390
Wellington, 6021
New Zealand
64-4-9394250 (Phone)

HOME PAGE: http://www.motu.org.nz

University of Waikato - Economics

New Zealand

Arthur Grimes

Motu Economic and Public Policy Research Trust ( email )

19 Milne Terrace
Island Bay
Wellington 6002
New Zealand

Stuart Donovan

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

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