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Product-based cultural change: Is the village global?

Listed author(s):
  • 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)

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.

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Paper provided by HAL in its series Post-Print with number halshs-00979107.

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Date of creation: Mar 2014
Publication status: Published in Journal of International Economics, Elsevier, 2014, 92 (2), pp.212-230. <10.1016/j.jinteco.2013.10.005>
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
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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