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The Phantom of the Opera: Cultural Amenities, Human Capital, and Regional Economic Growth

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  • Falck, Oliver

    ()
    (Ifo Institute for Economic Research)

  • Fritsch, Michael

    ()
    (University of Jena)

  • Heblich, Stephan

    ()
    (University of Bristol)

Abstract

We analyze the extent to which endogenous cultural amenities affect the spatial equilibrium share of high-human-capital employees. To overcome endogeneity, we draw on a quasi-natural experiment in German history and exploit the exogenous spatial distribution of baroque opera houses built as a part of rulers' competition for prestigious cultural amenities. Robustness tests confirm our strategy and strengthen the finding that proximity to a baroque opera house significantly affects the spatial equilibrium share of high-human-capital employees. Then, a cross-region growth regression shows that these employees induce local knowledge spillovers and shift a location to a higher growth path.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5065.

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Length: 42 pages
Date of creation: Jul 2010
Date of revision:
Publication status: published in: Labour Economics, 2011, 18 (6), 755-766
Handle: RePEc:iza:izadps:dp5065

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Keywords: regional economic growth; Bohemians; human capital; cultural amenities;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Operas y Crecimiento
    by Jesús Fernández-Villaverde in Nada Es Gratis on 2011-03-19 00:47:53
  2. Culture as an Economic Engine
    by Jack Ewing in Economix on 2011-03-18 09:00:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Kristoffer Moeller, 2014. "Culturally Clustered or in the Cloud? Location of Internet Start-ups in Berlin," SERC Discussion Papers 0157, Spatial Economics Research Centre, LSE.
  2. Buettner, T & Janeba, Eckhard, 2013. "City Competition for the Creative Class," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79838, Verein für Socialpolitik / German Economic Association.
  3. Borowiecki, Karol J., 2013. "Agglomeration Economies in Classical Music," Discussion Papers of Business and Economics 13/2013, Department of Business and Economics, University of Southern Denmark.
  4. Ludger Wößmann, 2011. "Die Bedeutung von Bildung für die Wirtschaftsentwicklung: Eine neue wirtschaftshistorische Forschungsagenda anhand preußischer Kreisdaten, Teil 2," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 64(01), pages 41-47, 01.
  5. Oliver Falck & Stephan Heblich & Anne Otto, 2013. "Agglomerationsvorteile in der Wissensgesellschaft: Empirische Evidenz für deutsche Gemeinden," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(03), pages 17-21, 02.
  6. Michael Fritsch & Alina Sorgner, 2013. "Entrepreneurship and Creative Professions: A Micro-Level Analysis," SOEPpapers on Multidisciplinary Panel Data Research 538, DIW Berlin, The German Socio-Economic Panel (SOEP).
  7. Benedikt Siegler, 2012. "The Effect of University Openings on Local Human Capital Formation: Difference-in-Differences Evidence from Germany," Working Papers 124, Bavarian Graduate Program in Economics (BGPE).
  8. MORIKAWA Masayuki, 2013. "Postgraduate Education, Labor Participation, and Wages: An empirical analysis using micro data from Japan," Discussion papers 13065, Research Institute of Economy, Trade and Industry (RIETI).
  9. Davide Cantoni & Franziska Kugler & Ludger Wößmann, 2014. "Der lange Schatten der Geschichte: Mechanismen der Persistenz in der Wirtschaftsgeschichte," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 67(02), pages 13-22, 01.
  10. Michael Fritsch & Michael Stützer, 2012. "The Geography of Creative People in Germany revisited," Jena Economic Research Papers 2012-065, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  11. Karol Jan BOROWIECKI, 2012. "History Matters: The Origins of Cultural Supply in Italy," Trinity Economics Papers tep0312, Trinity College Dublin, Department of Economics.
  12. Ghani, Ejaz & Kerr, William R. & O'Connell, Stephen D., 2012. "What makes cities more competitive ? spatial determinants of entrepreneurship in India," Policy Research Working Paper Series 6198, The World Bank.
  13. MORIKAWA Masayuki, 2012. "Postgraduate Education and Human Capital Productivity in Japan," Discussion papers 12009, Research Institute of Economy, Trade and Industry (RIETI).

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