 Artists, engineers, and aspects of economic growth in a creative regionAmitrajeet 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) Downloads: (external link) Related works: 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 DOI: 10.1016/j.econmod.2017.12.013 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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