A MEASUREMENT ISSUE REGARDING THE LINK BETWEEN A REGION’S CREATIVE INFRASTRUCTURE AND ITS INCOME

Amitrajeet A. BATABYAL

Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA.

aabgsh@rit.edu

Seung JICK YOO

Corresponding Author. Graduate School of International Service, Sookmyung Women’s University, 100 Cheongpa-ro 47-gil, Yongsan-gu, Seoul, Republic of Korea.

sjyoo@sookmyung.ac.kr

Abstract

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

Keywords: Creative Capital, Creative Infrastructure, Ordinary Least Squares Estimation

JEL classification: L80, C13
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