Working Paper: CEPR ID: DP15345
Authors: Quamrul H. Ashraf; Oded Galor; Marc Klemp
Abstract: This essay explores the deepest roots of economic development. It underscores the significance of evolutionary processes in shaping fundamental individual and cultural traits, such as time preference, risk and loss aversion, and predisposition towards child quality, that have contributed to technological progress, human-capital formation, and economic development. Moreover, it highlights the persistent mark of the exodus of Homo sapiens from Africa tens of thousands of years ago on the degree of interpersonal population diversity across the globe and examines the impact of this variation in diversity for comparative economic, cultural, and institutional development across countries, regions, and ethnic groups.
Keywords: comparative development; human evolution; natural selection; preference for child quality; time preference; loss aversion; entrepreneurial spirit; interpersonal diversity
JEL Codes: O11; N10; N30; Z10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Malthusian pressures (J11) | traits such as predisposition towards child quality, time preference, and risk aversion (D15) |
| traits such as predisposition towards child quality, time preference, and risk aversion (D15) | higher reproductive success (J13) |
| higher reproductive success (J13) | increased prevalence of these traits (Z13) |
| exodus of Homo sapiens from Africa (F22) | varying degrees of interpersonal diversity (M14) |
| varying degrees of interpersonal diversity (M14) | economic outcomes (F61) |
| interpersonal diversity (J29) | significant variations in income per capita across countries (F40) |
| interpersonal diversity (intermediate levels) (Z13) | enhanced productivity (O49) |
| excessive diversity (J15) | hinder social cohesion and trust (Z13) |
| hinder social cohesion and trust (Z13) | negative economic consequences (F69) |
| evolutionary advantages of traits (e.g., loss aversion) (D91) | shaped contemporary economic behaviors (F61) |