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Culture values and economic growth

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  • Jellal, Mohamed

Abstract

We integrate a general social norm function which associates status to accumulation of capital and consumption into a very simple model of endogenous growth. We show that societies which place a greater cultural weight on capital as opposed to consumption preferences 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, 2014. "Culture values and economic growth," MPRA Paper 57178, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:57178
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    References listed on IDEAS

    as
    1. Harbaugh, Richmond, 1996. "Falling behind the Joneses: relative consumption and the growth-savings paradox," Economics Letters, Elsevier, vol. 53(3), pages 297-304, December.
    2. Fershtman, Chaim & Weiss, Yoram, 1993. "Social Status, Culture and Economic Performance," Economic Journal, Royal Economic Society, vol. 103(419), pages 946-959, July.
    3. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    4. Corneo, Giacomo & Jeanne, Olivier, 1997. "On relative wealth effects and the optimality of growth," Economics Letters, Elsevier, vol. 54(1), pages 87-92, January.
    5. Futagami, Koichi & Shibata, Akihisa, 1998. "Keeping one step ahead of the Joneses: Status, the distribution of wealth, and long run growth," Journal of Economic Behavior & Organization, Elsevier, vol. 36(1), pages 109-126, July.
    6. Walter Fisher & Franz Hof, 2000. "Relative consumption, economic growth, and taxation," Journal of Economics, Springer, vol. 72(3), pages 241-262, October.
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    Cited by:

    1. Jellal, Mohamed, 2014. "L'esprit du capitalisme capital étranger et développement [The spirit of capitalism foreign capital and economic development]," MPRA Paper 57777, University Library of Munich, Germany.

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    More about this item

    Keywords

    Cultural incentives; social status; endogenous growth;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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