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Economics breeds culture

Listed author(s):
  • Patricio Garcia-Minguez

    ()

    (Facultat d'Economia i Empresa; Universitat de Barcelona (UB))

  • Ausias Ribo Argemi

    ()

    (Facultat d'Economia i Empresa; Universitat de Barcelona (UB))

Registered author(s):

    Several recent papers document the influence and long lasting effects oftechnology on preferences. Simultaneously, cultural factors are often invoked to explain heterogeneity in preferences. These two ideas suggest that culture determines the short run equilibrium values of economic variables, but, in the long run, culture changes in response to the underlying economic fundamentals. We build a model in which preferences are endogenous and the diversity in preferences (the "cultural" diversity) is explained by the variation in the relevant economic fundamentals. This can help explain observed differences in labor market attachment among groups defined e.g., by citizenship, ethnicity or gender.

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    File URL: http://www.ub.edu/ubeconomics/wp-content/uploads/2014/05/312-WEB.pdf
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    Paper provided by Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics in its series UB Economics Working Papers with number 2014/312.

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    Length: 36 pages
    Date of creation: 2014
    Handle: RePEc:ewp:wpaper:312web
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    Web page: http://www.ub.edu/ubeconomics
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    1. Alberto Alesina & Andrea Ichino & Loukas Karabarbounis, 2011. "Gender-Based Taxation and the Division of Family Chores," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 1-40, May.
    2. de la Croix, David, 1996. "The dynamics of bequeathed tastes," Economics Letters, Elsevier, vol. 53(1), pages 89-96, October.
    3. Hauk, Esther & Saez-Marti, Maria, 2002. "On the Cultural Transmission of Corruption," Journal of Economic Theory, Elsevier, vol. 107(2), pages 311-335, December.
    4. Constantinides, George M, 1990. "Habit Formation: A Resolution of the Equity Premium Puzzle," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 519-543, June.
    5. 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.
    6. Olivier Blanchard, 2004. "The Economic Future of Europe," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 3-26, Fall.
    7. Luisa Escriche & Gonzalo Olcina & Rosario Sánchez, 2004. "Gender discrimination and intergenerational transmission of preferences," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 485-511, July.
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