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Cultural identity, mobility and decentralization

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  • Schild, Christopher-Johannes
  • Wrede, Matthias

Abstract

Regionalism and efforts to reinforce regional cultural identities are on the rise in Europe. Examples can be found in Spain, Belgium, Italy, Great Britain, and other countries. Regional governments may invest in cultural identity due to beneficial effects on social capital. However, this comes at the cost of cultural adaption costs for non-natives. We propose a simple model of regional culture investments in a federation to investigate such a trade-off. The model shows that uncoordinated cultural policies generally lead to oversupply of regional culture, and that richer regions face higher incentives to invest in regional culture. We conclude that only mild assumptions are necessary to make a strong case for regional cultural integration.

Suggested Citation

  • Schild, Christopher-Johannes & Wrede, Matthias, 2015. "Cultural identity, mobility and decentralization," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 323-333.
  • Handle: RePEc:eee:jcecon:v:43:y:2015:i:2:p:323-333
    DOI: 10.1016/j.jce.2014.05.002
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    References listed on IDEAS

    as
    1. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    2. Marcel Fafchamps, 2006. "Development and social capital," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1180-1198.
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    More about this item

    Keywords

    Decentralization; Labor mobility; Cultural identity;

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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