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A Measurement Issue Regarding the Link between a Region's Creative Infrastructure and its Income

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  • Batabyal, Amitrajeet
  • Yoo, Seung Jick

Abstract

The creative capital possessed by the members of the creative class in region j is either acquired through education or present innately in these members. Therefore, the creative infrastructure (CI_j) in the jth region is the sum of a part (CI_j^E) representing creative capital obtained through education and a second part (CI_j^I) denoting creative capital present innately in the creative class members. A researcher wishes to estimate the true relationship between the jth region’s log income per creative class member (y_j ) and its creative infrastructure (CI_j ). He has data on CI_j^E but not on CI_j^I. We study whether an ordinary least squares (OLS) regression of y_j on a constant and CI_j^E will produce an unbiased estimate of the impact of CI_j on y_j in two cases. In the first case, CI_j^E and CI_j^I are uncorrelated. In the second case, CI_j^E and CI_j^I are positively correlated.

Suggested Citation

  • Batabyal, Amitrajeet & Yoo, Seung Jick, 2017. "A Measurement Issue Regarding the Link between a Region's Creative Infrastructure and its Income," MPRA Paper 82351, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:82351
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    References listed on IDEAS

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    1. K.C. Ho, 2009. "The Neighbourhood in the Creative Economy: Policy, Practice and Place in Singapore," Urban Studies, Urban Studies Journal Limited, vol. 46(5-6), pages 1187-1201, May.
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    3. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
    4. David F. Batten, 1995. "Network Cities: Creative Urban Agglomerations for the 21st Century," Urban Studies, Urban Studies Journal Limited, vol. 32(2), pages 313-327, March.
    5. Caroline Chapain & Roberta Comunian, 2010. "Enabling and Inhibiting the Creative Economy: The Role of the Local and Regional Dimensions in England," Regional Studies, Taylor & Francis Journals, vol. 44(6), pages 717-734.
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    More about this item

    Keywords

    Creative Capital; Creative Infrastructure; Ordinary Least Squares Estimation;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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