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How Many Members of the Creative Class Should a City Seek to Attract?

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  • Batabyal, Amitrajeet

Abstract

In this note, we focus on the decision problem faced by a city authority (CA) who seeks to attract members of the creative class to her city by providing a local public good (LPG). We construct a stylized model of this interaction and shed light on three questions. First, we determine the optimal number of creative class members to attract when the CA maximizes the utility of each member who chooses to reside in the city. Second, assuming the CA provides the LPG optimally given the total number of resident members, we compute the loss borne by this CA from having a suboptimal number of members living in the city. Finally, we ascertain what number of members living in the city maximizes the total utility obtained by the CA and then compare this answer with our answer to the first question stated above.

Suggested Citation

  • Batabyal, Amitrajeet, 2020. "How Many Members of the Creative Class Should a City Seek to Attract?," MPRA Paper 107028, University Library of Munich, Germany, revised 18 Feb 2021.
    • Handle: RePEc:pra:mprapa:107028
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    References listed on IDEAS

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    1. 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.
    2. Haifeng Qian, 2010. "Talent, creativity and regional economic performance: the case of China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 133-156, August.
    3. Thiess Buettner & Eckhard Janeba, 2016. "City competition for the creative class," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 413-451, November.
    4. 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.
    5. Hindriks, Jean & Myles, Gareth D., 2013. "Intermediate Public Economics," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262018691, December.
    6. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    7. David Audretsch & Maksim Belitski, 2013. "The missing pillar: the creativity theory of knowledge spillover entrepreneurship," Small Business Economics, Springer, vol. 41(4), pages 819-836, December.
    8. Amitrajeet A. BATABYAL & Seung Jick YOO, 2021. "A Note On The Use Of Amenities To Attract Creative Class Members To A City," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-14, June.
    9. Yingxue Rao & Deyi Dai, 2017. "Creative Class Concentrations in Shanghai, China: What is the Role of Neighborhood Social Tolerance and Life Quality Supportive Conditions?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 1237-1246, July.
    10. Daniel Vossen & Rolf Sternberg & Christoph Alfken, 2019. "Internal migration of the ‘creative class’ in Germany," Regional Studies, Taylor & Francis Journals, vol. 53(10), pages 1359-1370, October.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    City Authority; Creative Class; Local Public Good; Optimal Membership;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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