| By: |
Alberto Bisin (NYU, NBER, and CEPR);
Jared Rubin (Chapman University);
Avner Seror (Aix-Marseille School of Economics);
Thierry Verdier (PSE, Ecole des Ponts-Paris Tech, PUC-Rio, and CEPR) |
| Abstract: |
Recent theories of the Long Divergence between Middle Eastern and Western
European economies focus on Middle Eastern (over-)reliance on religious
legitimacy, use of slave soldiers, and persistence of restrictive
proscriptions of religious (Islamic) law. These theories take as exogenous the
cultural values that complement the prevailing institutions. As a result, they
miss the role of cultural values in either supporting the persistence of or
inducing change in the economic and institutional environment. In this paper,
we address these issues by modeling the joint evolution of institutions and
culture. In doing so, we place the various hypotheses of economic divergence
into one, unifying framework. We highlight the role that cultural transmission
plays in reinforcing institutional evolution toward either theocratic or
secular states. We extend the model to shed light on political
decentralization and technological change in the two regions. |
| Keywords: |
Long Divergence; cultural transmission; institutions; legitimacy; religion |
| JEL: |
O10 P16 P48 N34 N35 Z12 O33 |
| Date: |
2021 |
| URL: |
https://d.repec.org/n?u=RePEc:chu:wpaper:21-04 |