Culture and Institutions: Economic Development in the Regions of Europe

  title={Culture and Institutions: Economic Development in the Regions of Europe},
  author={G. Tabellini},
  journal={Development Economics},
  • G. Tabellini
  • Published 2005
  • Political Science
  • Development Economics
  • Does culture have a causal effect on economic development? The data on European regions suggest that it does. Culture is measured by indicators of individual values and beliefs, such as trust and respect for others, and confidence in individual self-determination. To isolate the exogenous variation in culture, I rely on two historical variables used as instruments: the literacy rate at the end of the XIXth century, and the political institutions in place over the past several centuries. The… CONTINUE READING
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