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Neckties in the tropics: a model of international trade and cultural diversity

James Rauch () and Vitor Trindade ()

Canadian Journal of Economics, 2009, vol. 42, issue 3, 809-843

Abstract: Some cultural goods are consumed socially and are characterized by the same consumption network externalities as languages. Also, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style, increasing utility in the short run but reducing quality and welfare in the long run. Increasing protection while keeping communication costs low may stimulate production of cultural goods that are `compatible' with the dominant style, adding little to the stock of usable ideas.

JEL-codes: F12 F13 F15 Z10 (search for similar items in EconPapers)
Date: 2009
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Journal Article: Neckties in the tropics: a model of international trade and cultural diversity (2009) Downloads
Working Paper: Neckties in the Tropics: A Model of International Trade and Cultural Diversity (2005) Downloads
Working Paper: Neckties in the Tropics: A Model of International Trade and Cultural Diversity (2005) Downloads
Working Paper: Neckties in the Tropics: a Model of International Trade and Cultural Diversity (2004) Downloads
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