TOK Lecture CULTURE
Can culture be a determinant of economic phenomena?
Culture can encompass the entirety of socially-transmitted behaviour
patterns, arts, beliefs, and all other products of human work and
thought.
See definitions sheet.
Working definition:
“those customary beliefs and values that ethnic, religious, and social
groups transmit fairly unchanged from generation to generation”
Learning 1: defining ‘culture’ isn’t that easy.
Can culture be a determinant of economic phenomena?
Two step process:
Transmission:
1. Parental influence
Bisin and Verdier, 2000
2. Institutional bias
(Almroth et al. , 2005)
3. Sexual selection
Learning 2: Culture changes slowly; it is not
optimisation
Learning 4: the relationship between culture and the economic structure of
society is of significant historical importance
The effect of culture on prior beliefs:
“Generally speaking, would you say that most people can be trusted or that
you have to be very careful in dealing with people?"
The effects of priors on economic outcomes
1. Delayed transactions
2. International Trade
3. Becoming an entrepreneur
Learning 5: levels of trust in an economy affect economic outcomes, and may
be culturally determined.
The effect of culture on economic preferences
Which, if any, do you consider to be especially important?, number
who respond: ‘‘Thrift, saving money and things.’’
From individual preferences to economic outcomes
Saving and the importance to the long-run:
- L-R Growth
- International macroeconomics
The effect of culture on political preferences
SOURCE:
Guiso, Luigi, Paola Sapienza, and Luigi Zingales. 2006. "Does Culture Affect
Economic Outcomes?" Journal of Economic Perspectives, 20(2): 23-48.
Further reading:
http://www.yourarticlelibrary.com/culture/culture-and-civilizationmeaning-structure-evolution-and-variability/24337/