Working Paper: CEPR ID: DP18629
Authors: Roberta Dess; Junjie Ren; Xiaojian Zhao
Abstract: The available evidence from anthropology, economics, and psychology suggests that sensitivity to the emotions of shame and guilt varies across cultures. So does (over)confidence in ability and skills. Is there a connection between these observations? We address this question theoretically and empirically. Wefind significant evidence, consistent with our model, of a negativerelationship between the cultural importance of shame relative to guilt and individual confidence. The relationship holds across countries, and for U.S. immigrants relative to their culture of origin.
Keywords: self-confidence; shame; guilt; cultural transmission; motivated beliefs
JEL Codes: D03; D83; Z1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Sensitivity to shame (D91) | Investments in good projects (G11) |
| Sensitivity to shame (D91) | Overconfidence (D83) |
| Importance of shame relative to guilt (D82) | Historical dependence on agriculture (N51) |
| Cultural importance of shame (Z13) | Individual self-confidence (D83) |
| Cultural importance of shame relative to guilt (Z13) | Individual confidence (D80) |