This chapter critically assesses, from an economic viewpoint, the role of the arts and culture in urban and regional development and growth. This includes the analysis of short run spending impacts, and longer term effects on location quality and creativity. In addition, the specific possibilities for using arts and cultural activities as a focal point in strategies for urban revitalization are discussed including the role of tourism, the non-market demand for arts and culture as an element in local willingness to support urban and regional development policies, questions of sustainability, etc. The reverse influence of regional economic development on the demand for and supply of culture in the region is analyzed and the location of arts and cultural industries is discussed highlighting the role of agglomeration of cultural industries.
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ReDIF This chapter was published in: V.A. Ginsburgh & D. Throsby (ed.) , Elsevier, chapter 30, pages 1051-1099, 2006.