| By: |
Gianmarco I.P. Ottaviano (Bocconi University, DEP-KITeS, FEEM and CEPR);
Giovanni Prarolo (University of Bologna and FEEM) |
| 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. |
| Keywords: |
Cultural Identity, Cosmopolitan City, Productiviy |
| Date: |
2009–09 |
| URL: |
http://d.repec.org/n?u=RePEc:fem:femwpa:2009.72&r=knm |