%0 Journal Article %T The Equilibrium Allocation of Creative Capital to R&D in a Dynamic Creative Region %A Amitrajeet A. Batabyal %A Hamid Beladi %J Theoretical Economics Letters %P 425-430 %@ 2162-2086 %D 2014 %I Scientific Research Publishing %R 10.4236/tel.2014.46054 %X

In this note, we analyze a stylized creative region that is populated by members of the creative class. The representative individual in this region possesses a constant relative risk aversion (CRRA) utility function. The existing creative capital is used to produce a final consumption good and to conduct R&D. We first derive the equilibrium level of creative capital that is allocated to the R&D sector. Next, we show how this level is affected by changes in the parameters and in some of the model constants. Finally, we discuss the policy implications of our comparative statics results.

%K Creative Capital %K Creative Class %K Dynamics %K Economic Growth %K R& %K D %U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=46836