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Cultural relativism and ideological policy makers in a general equilibrium model with for-profit and non-profit enterprises

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  • Bonatti, Luigi
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    Abstract

    This paper shows that two societies differing because of the people's initial propensity to devote time and efforts to non-profit activities may never converge. This lack of convergence is interpreted as the tendency of the cultural values and attitudes dominant in each society to perpetuate because of the economic behavior and the social processes that they contribute to elicit. Furthermore, it may not be possible to rank the different steady states toward which these two societies converge according to the Paretian criterion. Finally, the paper examines policies that promote values and attitudes non-coincident with those that are currently dominant.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research in Economics.

    Volume (Year): 62 (2008)
    Issue (Month): 1 (March)
    Pages: 1-15

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    Handle: RePEc:eee:reecon:v:62:y:2008:i:1:p:1-15

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    Web page: http://www.elsevier.com/locate/inca/622941

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    1. Oren Bar-Gill, 2004. "Law and Preferences," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(2), pages 331-352, October.
    2. Raquel Fernandez & Alessandra Fogli, 2005. "Culture: an empirical investigation of beliefs, work, and fertility," Staff Report 361, Federal Reserve Bank of Minneapolis.
    3. Esther Hauk & Maria Sáez, 1999. "On the cultural transmission of corruption," Economics Working Papers 392, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Arthur T. Denzau & Douglass C. North, 1993. "Shared Mental Models: Ideologies and Institutions," Economic History 9309003, EconWPA.
    5. Posner, Richard A, 1997. "Social Norms and the Law: An Economic Approach," American Economic Review, American Economic Association, vol. 87(2), pages 365-69, May.
    6. Palacios-Huerta, Ignacio & Santos, Tano J., 2004. "A theory of markets, institutions, and endogenous preferences," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 601-627, March.
    7. Ben-Ner, A. & Montias, J.M. & Neuberger, E., 1993. "Basic Issues in Organizations: A Comparative Perspective," Papers 93-01, Minnesota - Industrial Relations Center.
    8. von Weizsacker, Carl Christian, 1971. "Notes on endogenous change of tastes," Journal of Economic Theory, Elsevier, vol. 3(4), pages 345-372, December.
    9. Kreps, David M, 1997. "Intrinsic Motivation and Extrinsic Incentives," American Economic Review, American Economic Association, vol. 87(2), pages 359-64, May.
    10. Huck, Steffen, 1998. "Trust, Treason, and Trials: An Example of How the Evolution of Preferences Can Be Driven by Legal Institutions," Journal of Law, Economics and Organization, Oxford University Press, vol. 14(1), pages 44-60, April.
    11. Bisin, Alberto & Verdier, Thierry, 1998. "On the cultural transmission of preferences for social status," Journal of Public Economics, Elsevier, vol. 70(1), pages 75-97, October.
    12. Greif, Avner, 1994. "Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 912-50, October.
    13. Oren Bar-Gill & Chaim Fershtman, 2005. "Public Policy with Endogenous Preferences," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(5), pages 841-857, December.
    14. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
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