Artists, Engineers, and Aspects of Economic Growth in a Creative Region

Batabyal, Amitrajeet and Beladi, Hamid (2017): Artists, Engineers, and Aspects of Economic Growth in a Creative Region.

Abstract

We study aspects of economic growth in a region that is creative in the sense of Richard Florida. Members of the creative class fall into one of two possible groups. This grouping stems from the manner in which creative capital is acquired by the individual members. In this setting, we accomplish five tasks. First, we derive the wage of members in each of the two creative class groups. Second, we show that the average wage increases with the physical capital per creative class member ratio. Third, we derive an expression for the steady state physical capital per creative class member ratio. Fourth, we show that in a particular circumstance, the distribution of income does not affect the steady state physical capital per creative class member ratio. Finally, we ascertain the optimal income redistribution rule that maximizes the average steady state income of the creative class in the region under study.

• Item Type: MPRA Paper
• Language: English
• Keywords: Creative Capital, Creative Class, Economic Growth, Income Redistribution, Region
• Subjects: D - Microeconomics > D9 - Intertemporal Choice > D90 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

References

Arribas-Bel, D., Kourtit, K., and Nijkamp, P. 2015. The sociocultural sources of urban buzz, Environment and Planning C, 33, 1-17.

Boschma, R.A., and Fritsch, M. 2009. Creative class and regional growth: Empirical evidence from several European countries, Economic Geography, 85, 391-423.

Donegan, M., and Lowe, N. 2008. Inequality in the creative city: Is there still a place for ‘old-fashioned’ institutions? Economic Development Quarterly, 22, 46-62.

Florida, R. 2002. The Rise of the Creative Class. Basic Books, New York, NY.

Florida, R. 2005. The Flight of the Creative Class. Harper Business, New York, NY.

Florida, R. 2014. The creative class and economic development, Economic Development Quarterly, 28, 196-205.

Florida, R., Mellander, C., and Stolarick, K. 2008. Inside the black box of regional development---human capital, the creative class, and tolerance, Journal of Economic Geography, 8, 615-649.

Kerimoglu, E., and Karahasan, B.C. 2014. Location patterns of creative capital and regional disparities in Spain, Regional and Sectoral Economic Studies, 14, 113-132.

Liu, C.Y., and Xie, W. 2013. Creativity and inequality: The dual path of China’s urban economy? Growth and Change, 44, 608-630.

Lorenz, E. 2011. Regional learning dynamics and systems of education and training: A European comparison, Journal of the Knowledge Economy, 2, 481-506.

Marlet, G., and Van Woerkens, C. 2007. The Dutch creative class and how it fosters urban employment growth, Urban Studies, 44, 608-630.

Marrocu, E., and Paci, R. 2012. Education or creativity? What matters most for economic performance? Economic Geography, 88, 369-401.

Reese, L.A., and Sands, G. 2008. Creative class and economic prosperity: Old nostrums, better packaging? Economic Development Quarterly, 22, 3-7.

Siemiatycki, E. 2013. A smooth ride? From industrial to creative urbanism in Oshawa, Ontario, International Journal of Urban and Regional Research, 37, 1766-1784.