nep-evo New Economics Papers
on Evolutionary Economics
Issue of 2010‒07‒17
four papers chosen by
Matthew Baker
City University of New York

  1. The role of social trust in reducing long-term truancy and forming human capital in Japan By Yamamura, Eiji
  2. Cultural Leaders and the Clash of Civilizations By Esther Hauk; Hannes Mueller
  3. Essays on Natural Experiments in Behavioral Finance and Trade By Sauter, Wolf Nicolas
  4. Models By Maria Saez Marti

  1. By: Yamamura, Eiji
    Abstract: This paper attempts to examine how social trust influences human capital formation using prefectural level data in Japan. To this end, I constructed a proxy for social trust, based on the Japanese General Social Surveys. After controlling for socioeconomic factors, I found that social trust plays an important role in reducing the rate of long-term truancy in primary and junior high school. Results suggest that social trust improves educational quality and plays a critical role in human capital formation in developed countries.
    Keywords: human capital; educational economics; economic impact
    JEL: Z13 A21
    Date: 2010–06–30
  2. By: Esther Hauk; Hannes Mueller
    Abstract: This article builds a micro founded model of the clash of cultures. The clash is defined as the parent's fear of a trait change by their child in an overlapping generations model with intergenerational transmission of cultural traits. The extent of the clash is manipulated by cultural leaders who benefit from the cultural education effort by parents. We identify three channels through which the leaders can affect the clash of cultures: (i) by providing beneficial cultural values, (ii) by claims of cultural superiority and (iii) by cultural alienation, i.e. by inducing cultural dislike towards their own group. We show that all three channels can be in the leader's interest but channels (ii) and (iii) reduce the utility of the leader's goup members. This hints to a strong conflict of interest within groups - between the population at large and the benefactors of radicalization. We further show how the use of alienation relates to the economic opportunities available to a group.
    Date: 2010–07–12
  3. By: Sauter, Wolf Nicolas
    Keywords: Natural Experiments; Behavioral Finance; Trade
    Date: 2010–01–25
  4. By: Maria Saez Marti
    Abstract: I construct a theory of cultural transmission in which culture acquisition takes place in two stages, first in the family where parents transmit their own culture, and later in society where children are exposed to a wider set of cultural models. The role of models is to provide information about alternatives. Cultural variants differ in how strongly they are transmitted in the family and on how attractive they are to the children’s eyes. Attractiveness may depend on the actual models one can observe. I characterise the long run distribution of variants using directed trees and show that more visible cultural variants will have larger shares. Shares are also increasing in attractiveness and in family strength. When attractiveness is not context specific, variants competing with a wider set of variants, everything else equal, will have larger shares provided that copying is bidirectional. Expanding the set of models does not necessarily lead to an increase in shares.
    Keywords: Cultural transmission, role models, learning
    JEL: D10 I20 J13
    Date: 2010–07

This nep-evo issue is ©2010 by Matthew Baker. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.