EconPapers    
Economics at your fingertips  
 

Culture and Institutions: economic development in the regions of Europe

Guido Tabellini

No 292, Working Papers from IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University

Abstract: 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 selfdetermination. 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 political and social history of Europe provides a rich source of variation in these two variables at a regional level. The exogenous component of culture due to history is strongly correlated with current regional economic development, after controlling for contemporaneous education, urbanization rates around 1850 and national effects. Moreover, the data do not reject the over-identifying assumption that the two historical variables used as instruments only influence regional development through culture. The indicators of culture used in this paper are also strongly correlated with economic development and with available measures of institutions in a cross-country setting.

Date: 2005
New Economics Papers: this item is included in nep-eec, nep-geo, nep-his, nep-pke, nep-pol and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (195) Track citations by RSS feed

Downloads: (external link)
https://repec.unibocconi.it/igier/igi/wp/2005/292.pdf (application/pdf)

Related works:
Journal Article: Culture and Institutions: Economic Development in the Regions of Europe (2010) Downloads
Journal Article: Culture and Institutions: Economic Development in the Regions of Europe (2010) Downloads
Working Paper: Culture and Institutions: Economic Development in the Regions of Europe (2007) Downloads
Working Paper: Culture and institutions: economic development in the regions of Europe (2006) Downloads
Working Paper: Culture and institutions: economic development in the regions of Europe (2006) Downloads
Working Paper: Culture and Institutions: Economic Development in the Regions of Europe (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igi:igierp:292

Ordering information: This working paper can be ordered from
https://repec.unibocconi.it/igier/igi/

Access Statistics for this paper

More papers in Working Papers from IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University via Rontgen, 1 - 20136 Milano (Italy).
Bibliographic data for series maintained by ().

 
Page updated 2024-02-26
Handle: RePEc:igi:igierp:292