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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.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:inecon:v:92:y:2014:i:2:p:212-230
    DOI: 10.1016/j.jinteco.2013.10.005
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    More about this item

    Keywords

    Culture; Trade; Persistence; Homogenization;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Z1 - Other Special Topics - - Cultural Economics

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