Product-based cultural change: is the village global?

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Type
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Publications
Institution
Title
Product-based cultural change: is the village global?
Journal
Journal of International Economics
Author(s)
Maystre  A., Olivier  J., Thoenig  M., Verdier  T.
ISSN
0022-1996
Publication state
Published
Issued date
03/2014
Peer-reviewed
Oui
Volume
92
Number
2
Pages
212-230
Language
english
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
Web of science
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11/12/2009 9:43
Last modification date
21/08/2019 5:15
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