nep-cul New Economics Papers
on Cultural Economics
Issue of 2014‒06‒28
three papers chosen by
Roberto Zanola
Universita' del Piemonte Orientale Amedeo Avogadro

  1. Radio's impact on preferences for patronage benefits By Keefer, Philip; Khemani, Stuti
  2. The resurgence of cultural borders in international finance during the financial crisis: Evidence from Eurozone cross-border depositing By Kleimeier S.; Sander H.; Heuchemer S.
  3. Culture Matters: A Test of Rationality on Economic Growth By Forson, Joseph Ato; Janrattanagul, Jakkaphong; Carsamer, Emmanuel Carsamer

  1. By: Keefer, Philip; Khemani, Stuti
    Abstract: Citizens in developing countries support politicians who provide patronage or clientelist benefits, such as government jobs and gifts at the time of elections. Can access to mass media that broadcasts public interest messages shift citizens'preferences for such benefits? This paper examines the impact of community radio on responses to novel survey vignettes that make an explicit trade-off between political promises of jobs for a few versus public services for all. The impact of community radio is identified through a natural experiment in the media market in northern Benin, which yields exogenous variation in access across villages. Respondents in villages with greater radio access are less likely to express support for patronage jobs that come at the expense of public health or education. Gift-giving is not necessarily traded off against public services; correspondingly, radio access does not reduce preferences for candidates who give gifts. The pattern of results is consistent with a particular mechanism for radio's impact: increasing citizens'demand for broadly delivered health and education and thereby shaping their preferences for clientelist candidates.
    Keywords: Health Monitoring&Evaluation,Education For All,Population Policies,Housing&Human Habitats,E-Business
    Date: 2014–06–01
  2. By: Kleimeier S.; Sander H.; Heuchemer S. (GSBE)
    Abstract: In this paper, we demonstrate that cultural borders in international finance resurge during financial crises. To investigate the role of cultural borders during both tranquil and crisis periods, we employ a unique data set that focuses on Eurozone cross-border depositing in a gravity-model framework. We provide evidence that cultural distance limits international financial integration. However, cultural borders lost influence during a Europhoria phase after the introduction of the Euro notes in 2002, indicating that confidence in the new currency helps to overcome cultural borders. In contrast, cultural borders have severely limiting effects during crisis periods.
    Keywords: Single Equation Models; Single Variables: Models with Panel Data; Longitudinal Data; Spatial Time Series; Financial Aspects of Economic Integration; International Financial Markets; Banks; Depository Institutions; Micro Finance Institutions; Mortgages; Cultural Economics; Economic Sociology; Economic Anthropology: General;
    JEL: C23 F36 G15 G21 Z10
    Date: 2014
  3. By: Forson, Joseph Ato; Janrattanagul, Jakkaphong; Carsamer, Emmanuel Carsamer
    Abstract: There are widespread debates as to whether cultural values have a bearing on economic growth. Scholarly articles have actually had conflicting results with proponents arguing there is whiles opponents have thought otherwise. The aim of this paper is to verify the assertions made by these two schools of thought from the perspective of culture as a rationality component using an input-output growth model. We basically employed an approach that sought to define and aggregate cultural values under rationality indices: instrumental, affective, value and traditional rationality from 29 countries with data from world value survey (1981-2009). We systematically had them tested in an endogenous growth model alongside traditional economic variables. We conclude that when these cultural variables are combined with the so-called economic variables, there is an improvement in the model explanation than before. In addition, two of these cultural indices indicated a statistically positive effect on economic growth (instrumental and affective rationality). However, traditional rationality index was also robust but with a negative coefficient. Value rationality showed a somewhat weaker link to economic growth and was statistically insignificant. The policy implications of these findings are also discussed.
    Keywords: Economic growth, Rationality, Cultural traits
    JEL: O1 O11 O5
    Date: 2013–07–06

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