scholarly journals The Response of Creative Class Members to Regions Vying to Attract Them With Subsidies

2022 ◽  
pp. 016001762110618
Author(s):  
Amitrajeet A. Batabyal ◽  
Hamid Beladi
Keyword(s):  
Physical Capital ◽  
Creative Class ◽  
Plant Location ◽  
Theoretical Studies ◽  
Location Decision ◽  
Jel Codes ◽  
Class Member ◽  
Creative Capital ◽  
Regional Location ◽  
Regional Authorities

There are no theoretical studies in regional science that examine which region to locate in from the standpoint of a creative class member, given that the pertinent regional authorities (RAs) are competing among themselves to attract the creative class using subsidies. This gap provides the motivation for our paper. This paper’s contribution is that it is the first to theoretically study the regional location choice of creative class members when the RAs of the locations in which they might locate are using subsidies to attract them. Specifically, a knowledge good producing creative class member must decide which of two regions ( A or B) to locate his plant in. This good is produced using a Cobb–Douglas function with creative and physical capital. We analyze plant location in four cases. In the benchmark case, we show that the representative creative class member ought to locate his plant in the less expensive region B. Next, we show that a small subsidy to creative capital by region A switches the plant location decision from region B to A. Finally, when both regions grant identical subsidies to creative capital, the representative creative class member is indifferent between locating in regions A and B. So, for identical subsidies to affect the plant location decision, they are better targeted to physical and not to creative capital. JEL Codes: R11, R58

scholarly journals Interregional Competition for Mobile Creative Capital with and Without Physical Capital Mobility

2021 ◽  
pp. 016001762199522
Author(s):  
Amitrajeet A. Batabyal ◽  
Peter Nijkamp
Keyword(s):  
Capital Mobility ◽  
Physical Capital ◽  
Creative Class ◽  
Tax Policies ◽  
Extant Literature ◽  
Tax Subsidy ◽  
Final Good ◽  
First Case ◽  
Creative Capital ◽  
Optimal Taxes

A lacuna in the extant literature and our desire to contribute to the theoretical literature on how tax/subsidy policies can be used by regions to attract the creative class together provide the motivation for this paper. The paper’s basic contribution is that it is the first to theoretically analyze competition between two regions (1 and 2) for mobile creative capital, the key attribute possessed by the creative class. Both regions produce a final good using creative and physical capital. In the first case, physical capital is immobile and only region 2 uses tax policy to attract the mobile creative capital. We compute the equilibrium returns to creative and physical capital, we specify a key condition for creative capital in the aggregate economy, and we show which of three tax policies gives region 2 the highest income. In the second case, creative and physical capital are mobile and both regions pursue tax policies to attract mobile creative capital. Once again, we compute the equilibrium returns to creative and physical capital and then describe the optimal taxes for the two regions given that they wish to maximize regional income.

Capacities for the Development of Creative Capital in Lithuanian Counties

2020 ◽  
Vol 28 (4) ◽  
pp. 678-692
Author(s):  
Katarzyna Szara ◽  
Bogusław Ślusarczyk
Keyword(s):  
Creative Class ◽  
Relative Level ◽  
Creative Capital ◽  
Account Information ◽  
Cultural Amenities ◽  
The Republic ◽  
Statistical Yearbook

The concept of a creative class was introduced by Richard Florida in 2002 in his book The Rise of the Creative Class. The creative class consists of people involved in occupations recognised as inventive. This study is designed to identify capacities for the development of creative capital in the counties of Lithuania. Florida’s methodology for his creative model refers to the three powers of talent, technology and tolerance, which are determinants of development. The present assessment is based on generally available data acquired from the Statistical Yearbook of Lithuania. It takes into account information related to all the counties of the Republic of Lithuania. The accumulated data described are, at a relative level, the areas of talent, tolerance, technology and cultural amenities.

Determinants of Creative Capital Development at a Local Level: Case Study Municipalities of Podkarpackie, Poland

2018 ◽  
Vol 16 (3) ◽  
pp. 529-549
Author(s):  
Katarzyna Szara
Keyword(s):  
Economic Development ◽  
Time Perspective ◽  
Local Development ◽  
Local Level ◽  
Empirical Studies ◽  
Creative Class ◽  
Local Populations ◽  
Creative Capital ◽  
Capital Development

Although it is highly controversial, the concept proposed by R. Florida has an interesting and important feature, visible from a time perspective. Indeed, the theory of creative class started research into economic development based on creativity. Generally, there are no empirical studies focusing on these issues at the local level. The present study is an attempt to identify determinants of local development and to assess municipalities from the viewpoint of creative capital engagement. To achieve this the study analysed opinions acquired from representatives of municipal offices and representatives of local populations across Podkarpackie, one of the 16 regions of Poland. The findings show that municipalities of the Podkarpackie Region vary in terms of determinants for creative capital development.

scholarly journals “Saber alemán”: Inserción de migración calificada mexicana en el mercado laboral de Berlín.

2017 ◽  
Vol 5 (2) ◽  
Author(s):  
Jesús Javier Peña Muñoz
Keyword(s):  
Qualitative Research ◽  
Learning Process ◽  
Economic Value ◽  
Migration Policy ◽  
Creative Class ◽  
Political Integration ◽  
Skilled Migration ◽  
German Culture ◽  
German State ◽  
Creative Capital

Resumen: En nuestra investigación usamos el concepto de capital creativo como un instrumento teórico integrador de actividades, perfiles y movilidad de un tipo de migración laboral que llamamos clase creativa. Por medio de un enfoque cualitativo basado en entrevistas semi-estructuradas, observación de campo y análisis de discurso, nos adentramos en las experiencias de integración laboral de migrantes mexicanos de la clase creativa en el mercado laboral de Berlín. Encontramos que su inserción laboral y su “valor” para la economía receptora están condicionados por su capacidad de aprender y ajustar sus cualificaciones y estilo de vida a una “cultura común alemana”. Llamamos a este aprendizaje “saber alemán”. Este saber alemán refleja la orientación de la política migratoria del Estado alemán, la cual ponen a la asimilación cultural como un requisito para la integración económica y política. Abstract: We take the concept of creative capital to identify and analyze a type of skilled migration known as creative class. We employ qualitative research based on interviews to explore the economic insertion of Mexican creative class in Berlin, Germany. We found that the economic insertion of this type of skilled migrants as well as their economic “value” for the receiving economy are conditioned to their ability to learn and adjust their skills and lifestyle to a “common German culture”. We identify this learning process as “understand German”. This process reflects the orientation of the migration policy of the German State in terms of requesting cultural assimilation as a requisite for economic and political integration.

Case Study: Supply Chain View of Plant Location Decision Making with the Use of AHP Methodology

2011 ◽  
Vol 271-273 ◽  
pp. 719-724 ◽  
Author(s):  
Wei Bing Weng ◽  
Guang Jun Yang ◽  
Yun Zhang ◽  
Jian Wu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Decision Model ◽  
Plant Location ◽  
Management Model ◽  
Location Decision ◽  
Industrial Parks ◽  
Different Levels

As a node of a supply chain, plant plays a key role in the network, which has been a strategic topic in the study of supply chain management model. Plant location decision is one of the crucial problems in the optimization and design of supply chain. The converte of competitions between single companies to competitions between different supply chains urges the extension of plant location decision from the view of single plant to the entire supply chain. This paper presents the application of AHP methodology in decision making of plant location considering the roles of plant in an entire supply chain. The different levels of criteria such as cost, cycle time of supply chain, and quality of plant locations, are proposed to be considered in the decision model. The case presented in this paper concerns plant location decision of a British group, who selected an optimal plant location from six alternative industrial parks in China.

Monopoly versus Individual Welfare When a Local Public Good Is Used to Attract the Creative Class

2020 ◽  
pp. 016001762094608
Author(s):  
Amitrajeet A. Batabyal
Keyword(s):  
Public Good ◽  
Creative Class ◽  
Decision Problems ◽  
Individual Member ◽  
Local Public Good ◽  
City Authority ◽  
Class Member ◽  
Individual Welfare ◽  
Compare And Contrast

We study the decision problems faced by a city authority (CA) who focuses on two different objectives in her attempt to attract members of the creative class to her city by providing a local public good (LPG). First, we compute the maximum tax that a creative class member is willing to pay to enjoy the LPG on offer by living in the CA’s city. Second, assuming that the CA acts like a “monopolist” interested in maximizing the total benefit to her city, we determine the number of members N to attract to her city and the amount of the LPG L to provide so that the total benefit is maximized. Third, supposing that the CA maximizes the welfare of an individual member, we ascertain the values of N and L that maximize this individual welfare. Finally, we compare and contrast the outcomes that arise from the CA’s focus on these two distinct objectives.

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