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Inequality and Growth: The Role of Beliefs and Culture

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  • Strieborny Martin

Abstract

In egalitarian countries people believe that luck rather than hard work determines success in life and expect their government to provide both economic growth and social equity. This leads to a stronger dynamic interplay between government interventions, inequality and growth within such countries. The presented results thus confirm the importance of cultural factors and economic beliefs in shaping the inequality-growth link. More fundamentally, the paper demonstrates that cultural background does not only influence the long-run economic outcomes, but can also affect the joint dynamics of real economic variables within countries over time.

Suggested Citation

  • Strieborny Martin, 2010. "Inequality and Growth: The Role of Beliefs and Culture," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 10.15, Université de Lausanne, Faculté des HEC, DEEP.
  • Handle: RePEc:lau:crdeep:10.15
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    Cited by:

    1. Yongzheng Liu, 2016. "Do government preferences matter for tax competition?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(2), pages 343-367, April.

    More about this item

    Keywords

    culture; inequality; growth;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • Z1 - Other Special Topics - - Cultural Economics

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