Working Paper: NBER ID: w19750
Authors: Alberto Alesina; Paola Giuliano
Abstract: A growing body of empirical work measuring different types of cultural traits has shown that culture matters for a variety of economic outcomes. This paper focuses on one specific aspect of the relevance of culture: its relationship to institutions. We review work with a theoretical, empirical, and historical bent to assess the presence of a two-way causal effect between culture and institutions.
Keywords: Culture; Institutions; Economic Outcomes; Social Capital
JEL Codes: P16; Z1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| historical experiences (B15) | contemporary cultural traits (Z13) |
| contemporary cultural traits (Z13) | performance of local institutions (O43) |
| institutional arrangements (D02) | persistent cultural traits (Z13) |
| cultural values (A13) | effective functioning of formal institutions (O17) |
| higher levels of generalized trust (Z13) | better financial development (O16) |
| higher levels of generalized trust (Z13) | institutional quality (L15) |
| cultural persistence (Z10) | institutional reform (O17) |
| interaction of formal institutions and culture (O17) | multiple stable equilibria (C62) |
| institutions (D02) | culture (Z00) |