|
on Evolutionary Economics |
| By: | Nicola Amendola; Giacomo Gabbuti; Giovanni Vecchi |
| Abstract: | We argue against the use of composite indices, such as the Human Development Index (HDI), in economic history. We show that the HDI can be interpreted as a formal representation of the analyst's ethical system. We support our claim by introducing a new class of paternalistic social welfare functions (Graaff 1957, Mas-Colell, 1995) which encompasses all the HDI formulas put forth by the literature. The theoretical framework is illustrated by an empirical investigation of the long-run evolution of Italians' living standards and civic liberties. We conclude that any history based on composite indices is one where both data and history play a minor role, if any. |
| Keywords: | Human development index; economic wellbeing; composite indices; living standards; CES; social welfare functions; Italy. |
| Date: | 2021–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2021/42&r= |
| By: | Congdon Fors, Heather (University of Gothenburg, Department of Economics); Isaksson, Ann-Sofie (Research Institute of Industrial Economics (IFN)); Lindskog, Annika (University of Gothenburg, Department of Economics) |
| Abstract: | This paper investigates the explanatory power of social convention theory for explaining the persistence of female genital cutting (FGC) in a broad sample of African countries. While influential in policy circles, the idea that FGC is best described as a bad equilibrium in a social coordination game has recently been challenged by quantitative evidence from selected countries. These studies have pointed towards the importance of private preferences. We use novel approaches to test whether FGC is social interdependent when decisions also depend on private preferences. We test implications of the simple fact that according to social convention theory mothers will sometimes cut their daughters even if they do not support the practice. The substantial regional variation in FGC practices warrants investigation in a broad sample. Empirical results drawing on Demographic and Health Survey data from 34 surveys performed between 1992-2018 in 11 African countries suggest that cutting behavior is indeed often socially interdependent, and hence that it can be understood as a social convention. Our findings indicate that even if social convention theory does not provide the full picture, it should not be dismissed. Accordingly, interventions that acknowledge the social interdependence of cutting behavior are likely to be more successful than interventions that do not. |
| Keywords: | Female genital cutting; Social convention theory; Norms; Africa |
| JEL: | D71 D91 I15 O55 |
| Date: | 2021–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1417&r= |
| By: | Eric A. Hanushek; Babs Jacobs; Guido Schwerdt; Rolf van der Velden; Stan Vermeulen; Simon Wiederhold |
| Abstract: | The extensive literature on intergenerational mobility highlights the importance of family linkages but fails to provide credible evidence about the underlying family factors that drive the pervasive correlations. We employ a unique combination of Dutch survey and registry data that links math and language skills across generations. We identify a causal connection between cognitive skills of parents and their children by exploiting within-family between-subject variation in these skills. The data also permit novel IV estimation that isolates variation in parental cognitive skills due to school and peer quality. The between-subject and IV estimates of the key intergenerational persistence parameter are strikingly similar and close at about 0.1. Finally, we show the strong influence of family skill transmission on children’s choices of STEM fields. |
| JEL: | I24 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29450&r= |