Scandinavian Working Papers in Economics
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Department of Industrial Economics and Management, Royal Institute of Technology INDEK Working Paper Series, Department of Industrial Economics and Management, Royal Institute of Technology

No 2013/2:

Åke E. Andersson (), David E. Andersson (), Zara Daghbashyan () and Björn Hårsman ()

Abstract: Surveys of artists’ location choices show that they disproportionately reside in large cities. This paper introduces a model that attempts to explain this urban preference. The model includes four factors: access to other artists, access to consumers, access to service jobs, and housing affordability. These four factors are combined in a spatial equilibrium model. Subsequently, the model is used for an econometric estimation of factor effects. The results show that access to other artists and local access to service jobs are important localization factors. Educated labor used as a proxy for consumer demand has a significant effect on artists' location choices.

Keywords: location choice; artists; clustering; knowledge externalities; (follow links to similar papers)

JEL-Codes: R12; R14; R15; R23; Z11; (follow links to similar papers)

39 pages, December 16, 2013

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