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A Note on Optimal Income Redistribution in a Creative Region

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  • Batabyal, Amitrajeet

Abstract

We study optimal income redistribution in a region that is creative in the sense of Richard Florida and thereby extend aspects of the recent analysis in Batabyal and Beladi (2017). Using the terminology of these researchers, members of the creative class are either artists or engineers. This bipartite grouping stems from the manner in which creative capital is acquired by the artists and the engineers. Specifically, we show that when the savings rates of the artists and the engineers comprising the creative class satisfy a particular inequality, it is possible for a regional authority (RA) to uniquely redistribute income between these two groups in a way that achieves the so called “golden rule” stock of physical capital.

Suggested Citation

  • Batabyal, Amitrajeet, 2017. "A Note on Optimal Income Redistribution in a Creative Region," MPRA Paper 79676, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79676
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    References listed on IDEAS

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    1. Gerard Marlet & Clemens van Woerkens, 2007. "The Dutch Creative Class and How it Fosters Urban Employment Growth," Urban Studies, Urban Studies Journal Limited, vol. 44(13), pages 2605-2626, December.
    2. 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.
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    Cited by:

    1. Amitrajeet A. Batabyal, 2021. "Aspects of income inequality in a creative region," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 727-735, December.

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    More about this item

    Keywords

    Creative Capital; Creative Class; Golden Rule; Income Redistribution; Region;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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