Aspects of the accumulation of creative capital in a regional economy

We first construct a theoretical model of a regional economy that produces a final consumption good such as a knowledge good with two factors of production, namely, physical and creative capital. Next, we analyze the creative capital accumulation decision faced by individuals in this regional economy who aspire to membership in the so called creative class. Specifically, we compute the optimal level of education accumulated by the aforementioned individuals in this creative region. Finally, we delineate how this optimal level of education is affected by changes in the lifespan of individuals and by a parameter describing the growth rate of workers.