Creative Capital, Information and Communication Technologies, and Economic Growth in Smart Cities

Amitrajeet Batabyal and Peter Nijkamp

MPRA Paper from University Library of Munich, Germany

Abstract: We study aspects of economic growth in a stylized smart city with two distinct features. First, the modeled inhabitants of this city are smart because they possess skills. Using the language of Richard Florida, these inhabitants comprise the city’s creative class and hence they possess creative capital. Second, the city is smart because it uses information and communication technologies (ICTs) and we model one specific kind of ICT use. In this setting, we first derive expressions for three growth related metrics. Second, we use these metrics to show that the economy of smart city A converges to a balanced growth path (BGP). Third, we compute the growth rate of output per effective creative capital unit on this BGP. Fourth, we study how heterogeneity in initial conditions affects outcomes on the BGP by introducing a second smart city B into the analysis. At time t=0, two key savings rates in city A are twice as large as in city B. We compute the ratio of the BGP value of income per effective creative capital unit in city A to its value in city B. Finally, we compute the ratio of the BGP value of skills per effective creative capital unit in city A to its value in city B.

Keywords: Creative Capital; Creative Class; Economic Growth; Skills; Smart City (search for similar items in EconPapers)
JEL-codes: O33 R11 (search for similar items in EconPapers)
Date: 2018-01-16
New Economics Papers: this item is included in nep-geo, nep-gro and nep-knm
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Related works:
Journal Article: Creative capital, information and communication technologies, and economic growth in smart cities (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:83952

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