Working Paper: CEPR ID: DP15233
Authors: Torsten Persson; Guido Tabellini
Abstract: We review theoretical and empirical research on the dynamic interactions between cultures and institutions. We think about culture as a system of values and about institutions as formalized rules of the game. Our presentation is organized around a simple theoretical framework of political agency, which is gradually expanded so as to introduce new links and feedbacks between culture and institutions.
Keywords: Institutions; Culture; History; Development; Persistence
JEL Codes: H0; N0; O1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| civic political culture (P16) | effective political accountability (D72) |
| effective political accountability (D72) | lower corruption (H57) |
| effective political accountability (D72) | better governance (H11) |
| stronger institutions (O17) | lower incentives for politicians to extract rents (D72) |
| lower incentives for politicians to extract rents (D72) | better policy outcomes (D78) |
| presence of civic values among voters (D72) | willingness to punish political misbehavior (D72) |
| willingness to punish political misbehavior (D72) | improved governance (G38) |
| evolution of cultural traits (Z13) | relative fitness of civic versus partisan values (D72) |
| civic values become more prevalent (A13) | culture of accountability (M14) |
| culture of accountability (M14) | strengthens institutions (O43) |
| stronger historical institutions (O43) | develop more civic cultures (P19) |