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Product-based cultural change: Is the village global?

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  • Maystre, Nicolas
  • Olivier, Jacques
  • Thoenig, Mathias
  • Verdier, Thierry

Abstract

We provide a model of product-based cultural change where trade integration leads to cultural convergence. A standard trade model of Dixit–Stiglitz monopolistic competition is coupled with a micro-founded model of cultural dynamics. We show that access to varieties that are attached to a global cultural type changes the incentives of parents to socialize their children and transmit their type. The resulting increase in agents of the global cultural type leads to a magnification of the initial shock. A striking feature of the model is that even temporary shocks to openness may have permanent effects through the changing distribution of preferences in the economy.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 92 (2014)
Issue (Month): 2 ()
Pages: 212-230

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Handle: RePEc:eee:inecon:v:92:y:2014:i:2:p:212-230

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Web page: http://www.elsevier.com/locate/inca/505552

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Keywords: Culture; Trade; Persistence; Homogenization;

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References

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Citations

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Cited by:
  1. Giacomo Corneo & Frank Neher, 2014. "Income inequality and self-reported values," Journal of Economic Inequality, Springer, vol. 12(1), pages 49-71, March.
  2. Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," IZA Discussion Papers 4283, Institute for the Study of Labor (IZA).
  3. Giacomo Corneo, 2011. "GINI DP 17: Income Inequality, Value Systems and Macroeconomic Performance," GINI Discussion Papers 17, AIAS, Amsterdam Institute for Advanced Labour Studies.
  4. Maria MASOOD, 2014. "New Evidence on Development and Cultural Trade: Diversification, Reconcentration and Domination," Working Papers P85, FERDI.
  5. Head, Keith & Mayer, Thierry, 2013. "What separates us? Sources of resistance to globalization," CEPR Discussion Papers 9614, C.E.P.R. Discussion Papers.
  6. Anne-Célia Disdier & Silvio Tai & Lionel Fontagné & Thierry Mayer, 2010. "Bilateral trade of cultural goods," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(4), pages 575-595, January.
  7. repec:aia:ginidp:dp17 is not listed on IDEAS
  8. Corneo, Giacomo & Neher, Frank, 2012. "Income Inequality and Self-Reported Values," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 382, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  9. Isaac Holloway, 2014. "Foreign entry, quality, and cultural distance: product-level evidence from US movie exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 150(2), pages 371-392, May.
  10. Maystre, Nicolas & Olivier, Jacques & Thoenig, Mathias & Verdier, Thierry, 2014. "Product-based cultural change: Is the village global?," Journal of International Economics, Elsevier, vol. 92(2), pages 212-230.
  11. repec:hal:cepnwp:hal-00778502 is not listed on IDEAS
  12. Alessandra Cassar & Giovanna d'Adda & Pauline Grosjean, 2013. "Institutional Quality, Culture, and Norms of Cooperation: Evidence from a Behavioral Field Experiment," Discussion Papers 2013-10, School of Economics, The University of New South Wales.
  13. Nathan Nunn & Daniel Trefler, 2013. "Domestic Institutions as a Source of Comparative Advantage," NBER Working Papers 18851, National Bureau of Economic Research, Inc.

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