For helpful comments we are grateful to Kristian Behrens, Jacques Thisse, Arsen Palestini and other seminar participants at the conference, “Are cities more important than countries?” held in celebration of the 50th anniversary of the Institute of Housing and Urban Development Studies at Erasmus University Rotterdam. We are also grateful to Mark Gradstein and other participants at the SUS.DIV–CEPR–PSE Conference “Models of Cultural Dynamics and Diversity” held in Paris at the Paris School of Economics as well as to the editors and the referees of this journal. Financial support from the European Commission is gratefully acknowledged.
CULTURAL IDENTITY AND KNOWLEDGE CREATION IN COSMOPOLITAN CITIES*
Article first published online: 1 OCT 2009
© 2009, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 49, Issue 4, pages 647–662, October 2009
How to Cite
Ottaviano, G. I.P. and Prarolo, G. (2009), CULTURAL IDENTITY AND KNOWLEDGE CREATION IN COSMOPOLITAN CITIES. Journal of Regional Science, 49: 647–662. doi: 10.1111/j.1467-9787.2009.00628.x
- Issue published online: 1 OCT 2009
- Article first published online: 1 OCT 2009
- Received: December 2008; revised: April 2009; accepted: May 2009.
ABSTRACT We study how the city system is affected by the possibility for the members of the same cultural diaspora to interact across different cities. In so doing, we propose a simple two-city model with two mobile cultural groups. A localized externality fosters the productivity of individuals when groups interact in a city. At the same time, such interaction dilutes cultural identities and reduces the consumption of culture-specific goods and services. We show that the two groups segregate in different cities when diaspora members find it hard to communicate at distance whereas they integrate in multicultural cities when communication is easy. The model generates situations in which segregation is an equilibrium but is Pareto dominated by integration.