...-economic model which provides a testable mechanism for culturally biased socio-economic inter-generational transmission. In particular, the operationalisation of this mixed B-M type model seeks to find evidence for individual and local cultural capital effects on the economic achievements, in addition...

... is to identify relationships between human capital and cultural capital, in the context of local labour market productivity. Design/methodology/approach – As the key constituents of human capital, identified in the literature, are both the locally generated through investment in education and the inflowing...

..., the paper presents a theoretical endogenous growth model driven by the combination of the investments in human and cultural capital. Findings – The paper shows that cultural investment has a positive impact on economic growth and on the level of income provided that the economy is sufficiently...

... inclusion of the cultural factor in the growth model and the way to properly measure cultural capital (CC) for this purpose. Design/methodology/approach – The paper starts with analyzing the limitations of growth theory (in particular Paul Romer's endogenous growth model) when CC is not taken...