Modelling quality of life in ukraine and european countries

Abstract

The article examines the concept of quality of life and reviews the history of its development in the scientific literature. It is explained why estimation of country’s level of socio-economic development and quality of life can’t be done only by evaluation of GDP per capita and other dimensions have to be included such as those, which influence material well-being (level of income, living conditions, basic expenses rate in total consumption, income inequality, etc.) and other areas of well-being (such as quality of education, healthcare, ecology, social equality). Dimensions that have to be included while estimating the level of quality of life have been defined by the most influential works in both the theoretical development of the concept and its practical application. Tendencies of changes of life-quality in European countries during 2008 – 2019 have been described. The development of the most important indicators that have an impact on life-quality has also been examined. The article analyses the features of methodology and application of dynamic stochastic models of general equilibrium (DSGE-models). DSGE-model has been built based on analysis of quality of life. Evaluation of the model made it possible to determine the most influential factors in terms of quality of life, estimate the level of quality of life in Ukraine and European countries and formulate general recommendations based on the country’s weaknesses. The model can be used for analysis of life-quality for other countries as long as data of the indicators correspond with the values given by statistic services of the country. In case of necessity, the system of indicators used for estimation of the quality of life can be broadened or constricted.