Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56542
Authors: 
Schild, Christopher-Johannes
Wrede, Matthias
Year of Publication: 
2010
Series/Report no.: 
Joint discussion paper series in economics 16-2010
Abstract: 
Regional cultural identity increases trust and facilitates interaction between native citizens ('social capital'). At the same time, it also affects non-native's migration decisions and their utility as it excludes non-native mobile workers from economic interaction within the region. Policies to increase regional cultural identity thus exert an externality that is negative for a basic model where future local productivity is exogenous and random, leading to the result of oversupply of regional culture under decentralization. If migration affects productivity, the basic result of oversupply may be reversed, depending on production technology and the government's objective function. Some positive and normative conclusions for cultural policy are derived.
Subjects: 
decentralization
labor mobility
cultural policy
cultural identity
social capital
JEL: 
H72
H73
J61
Z13
Document Type: 
Working Paper

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