EconPapers    
Economics at your fingertips  
 

Artists, engineers, and aspects of economic growth in a creative region

Amitrajeet Batabyal () and Hamid Beladi

Economic Modelling, 2018, vol. 71, issue C, 214-219

Abstract: We study aspects of economic growth in a region that is creative a la Richard Florida. Members of the creative class possess creative capital and they fall into one of two possible groups---they are either artists or engineers. We describe the optimal income redistribution rule that maximizes the creative class's average steady state income. Because this average income is increasing in the physical capital per creative class member ratio, the rule requires a regional authority to redistribute income away from (towards) the group that saves a lower (higher) fraction of its income. This is a negative finding in the sense that the rule's implementation will tend to favor the group that already saves more. Even so, the finding is consistent with the observation made by some researchers that there is a connection between income inequality and regions in which the creative class performs a large part of all economic activities.

Keywords: Creative capital; Creative class; Economic growth; Income redistribution (search for similar items in EconPapers)
JEL-codes: R11 D90 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999317313676
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Artists, Engineers, and Aspects of Economic Growth in a Creative Region (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:71:y:2018:i:c:p:214-219

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-07-10
Handle: RePEc:eee:ecmode:v:71:y:2018:i:c:p:214-219