{"id":4456,"date":"2024-06-01T07:34:26","date_gmt":"2024-06-01T05:34:26","guid":{"rendered":"https:\/\/rsijournal.eu\/?p=4456"},"modified":"2024-06-05T17:32:04","modified_gmt":"2024-06-05T15:32:04","slug":"using-enterprise-zones-to-attract-the-creative-class-some-theoretical-issues","status":"publish","type":"post","link":"https:\/\/rsijournal.eu\/?p=4456","title":{"rendered":"USING ENTERPRISE ZONES TO ATTRACT THE CREATIVE CLASS: SOME THEORETICAL ISSUES"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Amitrajeet A. BATABYAL<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Arthur J. Gosnell Professor of Economics, Department of Economics, Rochester Institute of Technology, Rochester, NY 14623-5604, USA<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">aabgsh@rit.edu<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Seung Jick YOO<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Associate Professor, Sookmyung Women\u2019s University, Seoul, Republic of Korea<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">sjyoo@sookmyung.ac.kr<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">Corresponding Author<\/h3>\n\n\n\n<p><strong>Abstract<\/strong><\/p>\n\n\n\n<p>We study decision-making by a regional authority (RA) that uses enterprise zones to attract members of the creative class&#8212;referred to as entrepreneurs&#8212;to its region. The enterprise zones provide a local public good (LPG) <img loading=\"lazy\" decoding=\"async\" src=\"\" width=\"8\" height=\"17\">&nbsp;to entrepreneurs who become members. First, we compute the utility maximizing number of entrepreneurs <img loading=\"lazy\" decoding=\"async\" src=\"\" width=\"11\" height=\"17\">&nbsp;to attract and the optimal provision level of the LPG. Second, if the LPG <img loading=\"lazy\" decoding=\"async\" src=\"\" width=\"8\" height=\"17\">&nbsp;is chosen optimally, then, given <img loading=\"lazy\" decoding=\"async\" src=\"\" width=\"14\" height=\"17\">&nbsp;we determine an expression for the utility of an entrepreneur. Third, we calculate how much an entrepreneur would be willing to pay to become a member of an enterprise zone and then discuss the potential existence of an efficient and revenue-neutral equilibrium. Finally, we comment on some theoretical difficulties stemming from the twin facts that the number of enterprise zones created and the number of entrepreneurs attracted to these zones have to be integers.<\/p>\n\n\n\n<p><strong>Keywords:<\/strong> Creative Class, Enterprise Zone, Entrepreneur, Local Public Good, Membership<strong> <\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>JEL classification: <\/strong>R11, R58<\/p>\n\n\n\n<p>&nbsp;pp. 13-19<\/p>\n\n\n\n<p><a href=\"http:\/\/www.rsijournal.eu\/ARTICLES\/June_2024\/1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><em>read more<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amitrajeet A. BATABYAL Arthur J. Gosnell Professor of Economics, Department of Economics, Rochester Institute of Technology, Rochester, NY 14623-5604, USA aabgsh@rit.edu Seung Jick YOO Associate Professor, Sookmyung Women\u2019s University, Seoul, Republic of Korea sjyoo@sookmyung.ac.kr Corresponding Author Abstract We study decision-making by a regional authority (RA) that uses enterprise zones to attract members of the creative&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[181],"tags":[488,1492,1493,650,1494,272,393],"class_list":["post-4456","post","type-post","status-publish","format-standard","hentry","category-published","tag-creative-class","tag-enterprise-zone","tag-entrepreneur","tag-local-public-good","tag-membership","tag-r11","tag-r58"],"_links":{"self":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/4456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4456"}],"version-history":[{"count":2,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/4456\/revisions"}],"predecessor-version":[{"id":4461,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/4456\/revisions\/4461"}],"wp:attachment":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}