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Using local public goods to attract and retain the creative class: A tale of two cities

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  • Amitrajeet A. Batabyal
  • Karima Kourtit
  • Peter Nijkamp

Abstract

We study the impact that the provision of a local public good (LPG) by two cities has on their ability to attract and retain members of the creative class. This creative class consists of two types of members known as engineers and artists. Engineers are wealthier than artists and they also value the LPG more. We first focus on each city in isolation. We compute the marginal value and the marginal cost of the LPG and then determine the provision of this LPG when the provision is determined by uniform contributions and majority voting. Next, we allow the creative class members to migrate between the two cities and analyse whether engineers or artists migrate, the equilibrium distribution of the creative class, and the efficiency of the LPG provision. Finally, we consider the situation in each city just before migration and study how much of the LPG is provided when proportional contributions and majority voting determine this provision. A related question we address is whether engineers or artists now have an incentive to migrate and, if yes, we identify who would like to migrate and to which city. Este artículo estudia el impacto que tiene la provisión de un bien público local (BPL) por parte de dos ciudades en su capacidad de atraer y retener a los miembros de la clase creativa. Esta clase creativa consiste en dos tipos de miembros, definidos como ingenieros y artistas. Los ingenieros son más ricos que los artistas y también valoran más el BPL. Primero, el artículo se centra en cada ciudad de forma aislada. Se calculó el valor marginal y el coste marginal del BPL y luego se determinó la provisión de este BPL cuando la provisión se determina por contribuciones uniformes y voto por mayoría. A continuación, se permitió a los miembros de la clase creativa migrar entre las dos ciudades y analizar si los ingenieros o los artistas migran, la distribución de equilibrio de la clase creativa y la eficiencia de la provisión del BPL. Finalmente, se consideró la situación de cada ciudad justo antes de la migración y se estudió la cantidad del BPL que se proporciona cuando las contribuciones proporcionales y el voto por mayoría determinan la provisión. Una cuestión relacionada que se abordó es si los ingenieros o artistas tienen ahora un incentivo para emigrar y, en caso afirmativo, se identificó a quién le gustaría emigrar y a qué ciudad. 本稿では、クリエイティブ・クラスを惹き付けて留める可能性に対する、2つの都市による地方公共財の供給の影響を検討する。対象となるクリエイティブ・クラスは、「エンジニア」と「アーティスト」として知られる2つの職業である。エンジニアはアーティストよりも裕福であるが、いずれも地方公共財の価値を高く評価している。はじめに2つの都市それぞれを個別に注目する。限界価値と地方公共財の限界費用を算定し、「一様」分布と多数決により供給が決定される場合の地方公共財の供給を決定する。次に、クリエイティブ・クラスのメンバーに2つの都市間の「移住」を許可し、エンジニアまたはアーティストが移住するかどうか、クリエイティブ・クラスの均衡分布、地方公共財の供給の効率について分析する。最後に、移住の直前の各都市の状況を考慮に入れ、一様分布と多数決が供給を決定する場合に、地方公共財はどのくらい供給されているかを調べる。関連する問題として、エンジニアまたはアーティストには移住のインセンティブがあるかどうかを検討し、さらに、インセンティブがある場合には、移住する可能性があるのは誰か、またどちらの都市に移住するかを特定する。

Suggested Citation

  • Amitrajeet A. Batabyal & Karima Kourtit & Peter Nijkamp, 2019. "Using local public goods to attract and retain the creative class: A tale of two cities," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(3), pages 571-581, August.
  • Handle: RePEc:bla:rgscpp:v:11:y:2019:i:3:p:571-581
    DOI: 10.1111/rsp3.12214
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    9. Batabyal, Amitrajeet A. & Beladi, Hamid, 2018. "Artists, engineers, and aspects of economic growth in a creative region," Economic Modelling, Elsevier, vol. 71(C), pages 214-219.
    10. Amitrajeet A Batabyal & Hamid Beladi, 2016. "Creative capital accumulation and the advancement of India's creative economy," Environment and Planning C, , vol. 34(2), pages 356-363, March.
    11. Alden Porter & Amitrajeet A. Batabyal, 2016. "Physical capital mobility, the educational and quality aspects of creative capital, and output production," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(4), pages 167-175, November.
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    Cited by:

    1. Amitrajeet A. Batabyal, 2021. "How Many Members of the Creative Class Should a City Seek to Attract?," The Review of Regional Studies, Southern Regional Science Association, vol. 51(2), pages 161-169.
    2. Batabyal, Amitrajeet & Yoo, Seung Jick, 2020. "Using Enterprise Zones to Attract the Creative Class: Some Theoretical Issues," MPRA Paper 105414, University Library of Munich, Germany, revised 07 Jan 2021.
    3. Batabyal, Amitrajeet & Yoo, Seung Jick, 2019. "Using a Local Public Good to Attract Representative Creative Class Members: The Inefficient Equilibrium Case," MPRA Paper 97841, University Library of Munich, Germany, revised 11 Dec 2019.
    4. Batabyal, Amitrajeet A. & Jick Yoo, Seung, 2020. "Using utilitarian and Rawlsian policies to attract the creative class: A tale of two cities," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 295-300.
    5. Mohammad Salahshour, 2021. "Freedom to choose between public resources promotes cooperation," PLOS Computational Biology, Public Library of Science, vol. 17(2), pages 1-15, February.
    6. Lily Kiminami & Shinichi Furuzawa & Akira Kiminami, 2023. "Role of creative classes in sustainable agricultural development: focusing on creating shared value in rural Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 7(3), pages 903-934, September.
    7. Batabyal, Amitrajeet & Beladi, Hamid, 2022. "Sustained Economic Growth and Physical Capital Taxation in a Creative Region," MPRA Paper 113899, University Library of Munich, Germany, revised 17 Jul 2022.
    8. Batabyal, Amitrajeet A. & Kourtit, Karima & Nijkamp, Peter, 2020. "A political-economy analysis of the provision of urban anti-crime technologies in a model with three cities," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    9. Amitrajeet A. Batabyal & Seung Jick Yoo, 2023. "Using Taxes to Attract the Creative Class in the Presence of a Region-Specific Rent," The Review of Regional Studies, Southern Regional Science Association, vol. 53(2), pages 182-191.
    10. Amitrajeet A. BATABYAL & Seung Jick YOO, 2019. "A Stochastic Model Of Competition Between Two Cities For Members Of The Creative Class," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 37-42, December.
    11. Batabyal, Amitrajeet, 2020. "Monopoly vs. Individual Welfare When a Local Public Good is Used to Attract the Creative Class," MPRA Paper 101465, University Library of Munich, Germany, revised 09 Jun 2020.
    12. Amitrajeet A. Batabyal & Hamid Beladi, 2022. "The Response of Creative Class Members to Regions Vying to Attract Them With Subsidies," International Regional Science Review, , vol. 45(5), pages 581-600, September.
    13. Batabyal, Amitrajeet & Beladi, Hamid, 2021. "On the Existence of an Equilibrium in Models of Local Public Good Use by Cities to Attract the Creative Class," MPRA Paper 105196, University Library of Munich, Germany, revised 07 Jan 2021.
    14. Amitrajeet A. Batabyal, 2021. "Monopoly versus Individual Welfare When a Local Public Good Is Used to Attract the Creative Class," International Regional Science Review, , vol. 44(5), pages 605-614, September.

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    More about this item

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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