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on Cultural Economics |
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Issue of 2026–03–16
five papers chosen by Roberto Zanola, Università degli Studi del Piemonte Orientale |
| By: | Cheang, Bryan; Mehrotra, Praharsh |
| Abstract: | This paper explores the limits of mission‐directed entrepreneurial states by drawing on the theory of recombinant innovation and F.A. Hayek's insights on the spontaneous growth of knowledge in society. First, the use of discretionary policymaking curtails the range of knowledge generated in the process of social interaction, limiting the scope for ideas to be fortuitously recombined. Second, by privileging a single overarching mission, the state may foster a social culture that encourages compliance with authority, limiting the epistemic curiosity in individuals necessary for creative innovation. We make this argument through a comparative historical analysis of Singapore and Hong Kong, which adopted divergent approaches to development. Despite rapid growth in both, the former's technocratic governance came at the expense of its creative sectors, while the latter's reliance on spontaneous solutions enabled strong creative industries to develop despite little state support. By using creative performance as a proxy for innovation‐led development, we exemplify the limits of top‐down governance. Rather than fostering creative destruction, the entrepreneurial state may end up being a creative destroyer. |
| JEL: | R14 J01 N0 |
| Date: | 2026–02–24 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137148 |
| By: | Ramoutar, Richard |
| Abstract: | This paper re-examines the role of culture and religion in explaining cross-country differences in economic performance, using data from five waves of the Integrated Values Survey (IVS) — which merges the World Values Survey (WVS) and the European Values Study (EVS) — covering the period 1994- 2020. We constructed a cultural index using Principal Component Analysis (PCA) to achieve this goal. This study employs seven leading indicators from the WVS and EVS surveys on cultural development, including control, trust, respect, obedience, and identity. Further, the Generalized Method of Moments (GMM) system estimation was adopted. The findings confirm a significant positive impact of culture and religion on economic growth. These findings support the view that cultural and religious factors should be treated as core elements of the development process, alongside physical and human capital, institutions, and technological determinants. |
| Keywords: | Culture, Religion, Economic Growth, PCA, System GMM. |
| JEL: | O1 O11 |
| Date: | 2025–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127356 |
| By: | Müller, Karsten (National University of Singapore, NUS Business School and Risk Management Institute, and CEPR); Schwarz, Carlo (University of Bocconi, Department of Economics and IGIER, and PERICLES, CEPR, CAGE); Shen, Zekai (University of Bocconi, Department of Economics) |
| Abstract: | Social media platforms are often credited with empowering grassroots movements in the pursuit of political freedoms. In this paper, we show how social media can also be exploited by political elites to undermine democratic institutions, using the January 6th , 2021 Capitol insurrection as a case study. We present three main findings. First, by exploiting plausibly exogenous variation in Twitter usage, we document that social media exposure predicts participation in the Capitol attack, donations for anti-democratic causes, beliefs in election fraud, and support for the January 6th rioters. Second, Donald Trump's tweets questioning the election's integrity were followed by spikes in "Stop the Steal" activity on Twitter and pro-Trump donations originating from high Twitter usage counties. Third, the insurrection and Trump's account deletion were followed by a decrease in the public expression of toxic political and "Stop the Steal" messaging by pro-Trump users on Twitter, but had little effect on privately held beliefs about the election outcome and pro-Trump donations. |
| Keywords: | Social Media, January 6th, Election Denial, Content Moderation JEL Classification: L82, J15, O33 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:cge:wacage:794 |
| By: | Huynh, Cong Minh |
| Abstract: | This study investigates the multidimensional effects of governance quality on the development of the creative economy in 31 Asian countries over the period 2002–2023. Employing fixed-effects (FE) estimations and the System Generalized Method of Moments (System GMM) to address endogeneity and dynamic panel bias, the findings reveal that all dimensions of governance quality exert positive and statistically significant effects on creative economy performance, although their magnitudes differ substantially across dimensions. Control of corruption, government effectiveness, and regulatory quality emerge as the most influential drivers, while rule of law, political stability, and voice and accountability also play important roles in expanding and sustaining creative economic activities. These results reaffirm the central importance of governance as an institutional foundation for creative economy development and highlight the complementarity - rather than substitutability - among governance pillars. By providing comprehensive quantitative evidence for Asia, this study contributes to the literature and offers policy-relevant insights for fostering innovation, strengthening commercialization capacity, and unlocking the creative potential of Asian economies. |
| Keywords: | Governance quality, creative economy, control of corruption, government effectiveness, regulatory quality, Asia. |
| JEL: | C33 L82 O43 O57 Z11 |
| Date: | 2026–01–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127769 |
| By: | Daron Acemoglu; Georgy Egorov; Konstantin Sonin |
| Abstract: | In turbulent times, political labels become increasingly uninformative about politicians’ true policy preferences or their ability to withstand the influence of special interest groups. We offer a model in which politicians use campaign rhetoric to signal their political preferences in multiple dimensions. In equilibrium, the less popular types try to pool with the more popular ones, whereas the more popular types seek to separate themselves. The ability of voters to process information shapes politicians’ campaign rhetoric. If the signals on the cultural dimension are more precise, politicians signal more there, even if the economy is more important to voters. The unpopular type benefits from increased conformity, which bridges the candidates’ rhetoric and makes it more difficult for voters to make an informed decision. |
| JEL: | D72 D84 P00 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34909 |