RUHR ECONOMIC PAPERS “ Phantom of the Opera ” or “ Sex and the City ” ? Historical Amenities as Sources of Exogenous Variation # 493
نویسندگان
چکیده
Using the location of baroque opera houses as a natural experiment, Falck et al. (2011) claim to document a positive causal eff ect of the supply of cultural goods on today’s regional distribution of talents. This paper raises serious doubts on the validity of the identifi cation strategy underlying these estimates, though. While we are able to replicate the original results, we proceed to show that the same empirical strategy also assigns positive causal eff ects to the location of historical brothels and breweries. These estimated eff ects are similar in size and signifi cance to those of historical opera houses. We document that all these estimates refl ect the importance of institutions for longrun economic growth, and that the eff ect of historical amenities on the contemporary local share of high skilled workers disappears upon controlling for regions’ historical importance. JEL Classifi cation: R11, H42, J24
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