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Cultural Identity and Knowledge Creation in Cosmopolitan Cities

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  • Ottaviano, Gianmarco Ireo Paolo
  • Prarolo, Giovanni

Abstract

We study how the city system is affected by the possibility for the members of the same cultural diaspora to interact across different cities. In so doing, we propose a simple two-city model with two mobile cultural groups. A localized externality fosters the productivity of individuals when groups interact in a city. At the same time, such interaction dilutes cultural identities and reduces the consumption of culture-specific goods and services. We show that the two groups segregate in different cities when diaspora members find it hard to communicate at distance whereas they integrate in multicultural cities when communication is easy. The model generates situations in which segregation is an equilibrium but is Pareto dominated by integration.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7432.

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Date of creation: Aug 2009
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Handle: RePEc:cpr:ceprdp:7432

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Keywords: cosmopolitan cities; cultural diaspora; cultural identity; knowledge creation;

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References

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  1. Gilles Duranton & Diego Puga, 2000. "Nursery cities: urban diversity, process innovation and the life-cycle of products," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20204, London School of Economics and Political Science, LSE Library.
  2. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
  3. GianMarco Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US cities," Econometric Society 2004 North American Summer Meetings 91, Econometric Society.
  4. Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 108(3), pages 619-52, August.
  5. Bisin, A. & Verdier, T., 1999. "Beyond the Melting Pot: Cultural Transmission, Marriage, and the Evolution of Ethnic and Religious Traits," Papers, Laval - Laboratoire Econometrie 1999-10, Laval - Laboratoire Econometrie.
  6. David J. Cooper & John H. Kagel, 2005. "Are Two Heads Better Than One? Team versus Individual Play in Signaling Games," American Economic Review, American Economic Association, vol. 95(3), pages 477-509, June.
  7. de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(1), pages 110-33, February.
  8. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "Cities and Cultures," Working Papers 2004.92, Fondazione Eni Enrico Mattei.
  9. Berliant, Marcus & Fujita, Masahisa, 2007. "Dynamics of knowledge creation and transfer: The two person case," MPRA Paper 4973, University Library of Munich, Germany.
  10. Bisin, Alberto & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2006. "'Bend It Like Beckham': Identity, Socialization and Assimilation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5662, C.E.P.R. Discussion Papers.
  11. Giovanni Prarolo & Elena Bellini & Gianmarco I.P. Ottaviano & Dino Pinelli, 2009. "Cultural Diversity and Economic Performance: Evidence from European Regions," Working Papers 2009.63, Fondazione Eni Enrico Mattei.
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Cited by:
  1. Annie Tubadji & Peter Nijkamp, 2012. "Altruism to Strangers for our Own Sake: Domestic Effects from Immigration," Tinbergen Institute Discussion Papers 12-079/3, Tinbergen Institute.
  2. repec:dgr:uvatin:2012079 is not listed on IDEAS
  3. Ryusuke Ihara, 2011. "Agglomeration with the pros and cons of labor heterogeneity," ERSA conference papers ersa11p528, European Regional Science Association.
  4. Aurélie LALANNE (GREThA, CNRS, UMR 5113) & Guillaume POUYANNE ( GREThA, CNRS, UMR 5113), 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA, Groupe de Recherche en Economie Théorique et Appliquée 2012-11, Groupe de Recherche en Economie Théorique et Appliquée.
  5. Machikita, Tomohiro & Ueki, Yasushi, 2012. "Impact of Production Linkages on Industrial Upgrading in ASEAN, the People’s Republic of China, and India: Organizational Evidence of a Global Supply Chain," ADBI Working Papers, Asian Development Bank Institute 399, Asian Development Bank Institute.
  6. Ryusuke Ihara & Shizu Yamamoto, 2012. "Does labor diversity cause agglomeration in Japan?: an NEG approach with a covariance structure analysis," ERSA conference papers ersa12p430, European Regional Science Association.

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