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Product-based cultural change: Is the village global?

Nicolas Maystre, Jacques Olivier () and Mathias Thoenig ()
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Jacques Olivier: GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique

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Abstract: We provide a model of product-based cultural change where trade integration leads to cultural convergence. A standard trade model of Dixit-Stiglitz monopolistic competition is coupled with a micro-founded model of cultural dynamics. We show that access to varieties that are attached to a global cultural type changes the incentives of parents to socialize their children and transmit their type. The resulting increase in agents of the global cultural type leads to a magnification of the initial shock. A striking feature of the model is that even temporary shocks to openness may have permanent effects through the changing distribution of preferences in the economy.

Keywords: Culture; Trade; Persistence; Homogenization (search for similar items in EconPapers)
Date: 2014-03
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Published in Journal of International Economics, Elsevier, 2014, 92 (2), pp.212-230. <10.1016/j.jinteco.2013.10.005>

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Working Paper: Product-Based Cultural Change: Is the Village Global? (2009) Downloads
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DOI: 10.1016/j.jinteco.2013.10.005

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