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The Dynamics of Development in a Zero-Sum World

Author

Listed:
  • Augustin Bergeron
  • Jean-Paul Carvalho
  • Joseph Henrich
  • Nathan Nunn
  • Jonathan L. Weigel

Abstract

This chapter examines the consequences of zero-sum environments for cultural change, innovation, and long-term economic growth. We introduce innovation into the framework developed by Bergeron et al. (forthcoming), in which zero-sum environments give rise to demotivating beliefs. Although demotivating beliefs improve static efficiency by limiting excessive competition in zero-sum environments, we show that they can also impede long-term growth. Because demotivating beliefs suppress effort, they can also reduce learning-by-doing and other production spillovers. Hence, they can inhibit innovation and act as a cultural evolutionary kludge. We apply the model to explain the cultural changes associated with Western Europe's economic rise after 1500.

Suggested Citation

  • Augustin Bergeron & Jean-Paul Carvalho & Joseph Henrich & Nathan Nunn & Jonathan L. Weigel, 2026. "The Dynamics of Development in a Zero-Sum World," NBER Working Papers 35813, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35813
    Note: DAE DEV POL
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    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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