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Culture and Economic Performance

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  • Casson, Mark
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    Abstract

    Culture, defined as shared values and beliefs, can influence the performance of an economy in many ways. The culture of a group, whether national, regional or ethnic, may be regarded as a particular type of intangible public good. The chapter summarizes and critiques a positive theory of inter-cultural competition. According to this theory, culture is created by leaders, who specialize in the production of culture, and is shared by their followers. Leaders compete for followers in order to increase the rents that they can extract from their groups. Whilst some of these rents may be pecuniary, most are non-pecuniary, such as the enjoyment of pursuing a public project which glorifies the leader and their group. There are four main dimensions of culture which influence performance, and there are trade-offs between them which are governed by the environment of the social group. The positive theory is useful in interpreting historical evidence on the rise and decline of societies, institutions, and organizations of various kinds.

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    This chapter was published in:

  • V.A. Ginsburgh & D. Throsby (ed.), 2006. "Handbook of the Economics of Art and Culture," Handbook of the Economics of Art and Culture, Elsevier, edition 1, volume 1, number 1, December.
    This item is provided by Elsevier in its series Handbook of the Economics of Art and Culture with number 1-12.

    Handle: RePEc:eee:artchp:1-12

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    Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description

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    Cited by:
    1. Heuchemer, Sylvia & Kleimeier, Stefanie & Sander, Harald, 2008. "The Geography of European Cross-Border Banking: The Impact of Cultural and Political Factors," Research Memorandum 008, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    2. Ralston, David A. & Egri, Carolyn P. & Riddle, Liesl & Butt, Arif & Dalgic, Tevfik & Brock, David M., 2012. "Managerial values in the greater Middle East: Similarities and differences across seven countries," International Business Review, Elsevier, vol. 21(3), pages 480-492.

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