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Product-based cultural change: Is the village global?

Author

Listed:
  • Nicolas Maystre

    (UNCTAD - United Nations Conference on Trade and Development - United Nations Conference on Trade and Development)

  • Jacques Olivier

    () (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Mathias Thoenig

    (CEPR - Center for Economic Policy Research - CEPR, Faculty of Business and Economics - Université de Lausanne)

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

  • Nicolas Maystre & Jacques Olivier & Mathias Thoenig, 2014. "Product-based cultural change: Is the village global?," Post-Print halshs-00979107, HAL.
  • Handle: RePEc:hal:journl:halshs-00979107
    DOI: 10.1016/j.jinteco.2013.10.005
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00979107
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    More about this item

    Keywords

    Culture; Trade; Persistence; Homogenization;

    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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