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Culture Values Entrepreneurship and Growth

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  • Jellal, Mohamed

Abstract

We integrate a social norm which associates status to accumulation of capital and consumption into a simple model of endogenous growth. We show that societies which place a greater weight of cultural values on stock of accumulated capital as opposed to consumption will experience fast growth. Our results are consistent with those obtained by Baumol (1990) in the context of entrepreneurship and by Fershtman and Weiss (1991).

Suggested Citation

  • Jellal, Mohamed, 2009. "Culture Values Entrepreneurship and Growth," MPRA Paper 17137, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17137
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    References listed on IDEAS

    as
    1. Gali, Jordi, 1994. "Keeping Up with the Joneses: Consumption Externalities, Portfolio Choice, and Asset Prices," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(1), pages 1-8, February.
    2. Harbaugh, Richmond, 1996. "Falling behind the Joneses: relative consumption and the growth-savings paradox," Economics Letters, Elsevier, vol. 53(3), pages 297-304, December.
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    More about this item

    Keywords

    Entrepreneurship; Culture Values; Social Status; Growth;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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