EconPapers    
Economics at your fingertips  
 

City competition for the creative class

Thiess Buettner () and Eckhard Janeba ()
Additional contact information
Thiess Buettner: University of Erlangen-Nuremberg

Authors registered in the RePEc Author Service: Thiess Büttner ()

Journal of Cultural Economics, 2016, vol. 40, issue 4, 413-451

Abstract: Abstract This paper explores the conditions under which decentralization and fiscal competition lead to a policy of providing public amenities in order to attract highly productive labor. It provides a theoretical analysis which shows that the incentive to provide such amenities is particularly strong, if institutional restrictions prevent local governments from adjusting their tax structure. The empirical analysis considers the case of Germany, where public subsidies to local theaters are shown to exert a compensating earnings differential for highly educated labor. Taking account of the institutional setting, our empirical results suggest that local jurisdictions in Germany are subject to a substantial fiscal incentive to subsidize cultural activities.

Keywords: Fiscal competition; Creative class; Cultural amenities; Theater subsidies; Tax autonomy; Capitalization; Individual earnings (search for similar items in EconPapers)
JEL-codes: H76 Z18 H41 R13 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10824-015-9258-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: City Competition for the Creative Class (2013) Downloads
Working Paper: City Competition for the Creative Class (2013) 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:kap:jculte:v:40:y:2016:i:4:d:10.1007_s10824-015-9258-1

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10824/PS2

Access Statistics for this article

Journal of Cultural Economics is currently edited by Kathryn Graddy and Samuel Cameron

More articles in Journal of Cultural Economics from Springer, The Association for Cultural Economics International Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-06-05
Handle: RePEc:kap:jculte:v:40:y:2016:i:4:d:10.1007_s10824-015-9258-1