A Note on Optimal Income Redistribution in a Creative Region

Amitrajeet Batabyal

MPRA Paper from University Library of Munich, Germany

Abstract: We study optimal income redistribution in a region that is creative in the sense of Richard Florida and thereby extend aspects of the recent analysis in Batabyal and Beladi (2017). Using the terminology of these researchers, members of the creative class are either artists or engineers. This bipartite grouping stems from the manner in which creative capital is acquired by the artists and the engineers. Specifically, we show that when the savings rates of the artists and the engineers comprising the creative class satisfy a particular inequality, it is possible for a regional authority (RA) to uniquely redistribute income between these two groups in a way that achieves the so called “golden rule” stock of physical capital.

Keywords: Creative Capital; Creative Class; Golden Rule; Income Redistribution; Region (search for similar items in EconPapers)
JEL-codes: D31 R11 (search for similar items in EconPapers)
Date: 2017-06-09
New Economics Papers: this item is included in nep-cul
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: A NOTE ON OPTIMAL INCOME REDISTRIBUTION IN A CREATIVE REGION (2017)
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