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Cultural attributes, national saving and economic outcomes

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  • Shoham, Amir
  • Malul, Miki

Abstract

Economic and financial researchers rarely use culture as an exploratory variable for economic and financial events. This paper explores the role of cultural attributes in a nation's welfare. First, we use a theoretical model to show that the higher a nation's long term orientation, the more it chooses to save. We also show that nations with higher long term orientation enjoy a higher level of welfare. We complement the theoretical model with empirical analysis using a panel of data for 86 countries, from 1999 to 2009. The results from the empirical study support our proposition that nations with a higher long term orientation have higher saving rates.

Suggested Citation

  • Shoham, Amir & Malul, Miki, 2013. "Cultural attributes, national saving and economic outcomes," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 180-184.
    • Handle: RePEc:eee:soceco:v:47:y:2013:i:c:p:180-184
    DOI: 10.1016/j.socec.2012.07.008
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    References listed on IDEAS

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    1. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    2. Norman Loayza & Klaus Schmidt-Hebbel & Luis Servén, 2000. "What Drives Private Saving Across the World?," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 165-181, May.
    3. Tullio Jappelli & Marco Pagano, 1994. "Saving, Growth, and Liquidity Constraints," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 83-109.
    4. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    5. Rosenboim, Mosi & Shavit, Tal & Shoham, Amir, 2010. "Financial decision making in collective society--A field test on Israeli kibbutz members and city residents," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 30-36, January.
    6. Elke U. Weber & Richard A. Milliman, 1997. "Perceived Risk Attitudes: Relating Risk Perception to Risky Choice," Management Science, INFORMS, vol. 43(2), pages 123-144, February.
    7. Sebastian Edwards, 1995. "Why are Saving Rates so Different Across Countries?: An International Comparative Analysis," NBER Working Papers 5097, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Ludek Kouba & Hans Pitlik, 2014. "I wanna live my life: Locus of Control and Support for the Welfare State," MENDELU Working Papers in Business and Economics 2014-46, Mendel University in Brno, Faculty of Business and Economics.
    2. Jamaani, Fouad & Ahmed, Abdullahi D., 2022. "The psychological and economic roles of culture on global underpricing difference: A new hierarchical evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 33(C).
    3. Hans Pitlik & Luděk Kouba, 2013. "The Interrelation of Informal Institutions and Governance Quality in Shaping Welfare State Attitudes. WWWforEurope Working Paper No. 38," WIFO Studies, WIFO, number 46924, April.

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    More about this item

    Keywords

    Culture; Welfare; Saving;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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