Does a higher cultural supply raise cultural consumption? The association between individual and city traits and cultural consumption in Chile

Abstract While cultural economics and urban literatures have well established that more able individuals tend to prefer mostly cities with a high level of amenities schooling is one the main individual determinants consumption, there no empirical evidence on whether specialized in culture boost consumption their residents. This research takes step back compared most studies directly tests whether—controlling for characteristics—the higher city supply, probability consuming goods. Using data 2017 from Chile an instrumental variable approach, results suggest cities’ employment shape workers’ decisions consume A positive impact supply found both aggregated disaggregated goods, robust result even under weaker exclusion restrictions instrument.