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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)

  • Olivier Jacques

    (HEC Paris - Ecole des Hautes Etudes Commerciales, 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

    (HEC Lausanne - Faculté des Hautes Etudes Commerciales (HEC Lausanne), CEPR - Center for Economic Policy Research)

  • Thierry Verdier

    (CEPR - Center for Economic Policy Research, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

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 & Olivier Jacques & Mathias Thoenig & Thierry Verdier, 2014. "Product-based cultural change: Is the village global?," PSE-Ecole d'économie de Paris (Postprint) halshs-01109509, HAL.
    • Handle: RePEc:hal:pseptp:halshs-01109509
    DOI: 10.1016/j.jinteco.2013.10.005
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    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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