Which Aspects of Culture Play an Important Role in Economic Development?
| Thesis title in Czech: | Which Aspects of Culture Play an Important Role in Economic Development? |
|---|---|
| Thesis title in English: | Which Aspects of Culture Play an Important Role in Economic Development? |
| Key words: | Kultura, Růst |
| English key words: | Culture, Growth |
| Academic year of topic announcement: | 2014/2015 |
| Thesis type: | diploma thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 19.06.2015 |
| Date of assignment: | 19.06.2015 |
| Date and time of defence: | 22.06.2016 10:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 13.05.2016 |
| Date of proceeded defence: | 22.06.2016 |
| Opponents: | PhDr. Lenka Šťastná, Ph.D. |
| URKUND check: | |
| Guidelines |
| Methodology:
For the empirical testing, I am planning to use cross-country regression using Bayesian Model Averaging framework. Such technique allows to include many more regressors in a single-regression equation than classical econometrics, effectively reducing model uncertainty and omitted variable bias. To account for the possible endogeneity of culture, I Intend to use Instrumental Variable Bayesian Model Averaging developed by Karl and Lenkoski 2012. The source of data will be various surveys such as World Values Survey or European Values Survey. |
| References |
| Acemoglu, D., Johnson, S. and Robinson, J. 2001. “The colonial origins of comparative development: an empirical investigation,” American Economic Review 117: 1231–1294.
Beugelsdijk, S., Maseland, R., 2011. Culture in Economics: Histories, Methodological Reflections and Contemporary Applications. Cambridge University Press, Cambridge. Guiso, Luigi, Paola Sapienza, and Luigi Zingales. 2006. "Does Culture Affect Economic Outcomes?" Journal of Economic Perspectives, 20(2): 23-48. Hall, R. and Jones, C.I. 1999. “Why do some countries produce so much more output per worker than others?” Quarterly Journal of Economics 114: 83–116. Karl, A. and Lenkoski, A., 2012. “Instrumental Variable Bayesian Model Averaging via Conditional Bayes Factors,“ working paper, arXiv:1202.5846v3 [stat.ME]. LaPorta, R., Lopez-de-Silanes, F. and Shleifer, A. 2008. “The economic consequences of legal origin,” Journal of Economic Literature 46.2: 285–332. Oh, K. 2005. “A Cultural Analysis of South Korea's Economic Prospects,” Global Economic Review: Perspectives on East Asian Economies and Industries, 34:2, 213-231 Rodrik, D., Subramanian, A. and Trebbi, F. 2004. “Institutions rule: the primacy of institutions over geography and integration in economic development,” Journal of Economic Growth 9.2: 131–165. |
| Preliminary scope of work |
| The importance of culture in explaining individual behaviour and economic success was recognized several centuries ago by, for example, Adam Smith, a century later by Karl Max and Max Weber. However, the marginalist revolution in economics sidelined cultural factors for some time. Today, the importance of culture has become widely recognized as it is illustrated by the main four areas of study: (1) Entrepreneurial culture, (2) Trust, (3) International business, (4) Comparative corporate governance (Beugelsdijk and Maseland 2011). Events such as the spectacular rise of East Asia or communism’s demise contributed to the perception that models assuming full rationality and efficient markets are able to provide a very limited explanation of economic development. In this context, culture is seen as a possible “deep” determinant of economic development (Acemoglu et al. 2001; Hall and Jones 1999; La Porta et al. 2008; Rodrik et al. 2004).
Expected Contribution: The expected contribution is to evaluate the relationship between culture and economic development within the rigorous framework of BMA (IVBMA). This technique gives us more confidence in the results because we simultaneously deal with model uncertainty and omitted variable bias. Furthermore, the endogeneity of culture will be addressed and at the time the thesis will try to avoid measurement issues. I. Introduction II. Literature Review III. Bayesian Model Averaging IV. Data V. Model VI. Assessment of the Results VII. Conclusion |
| Preliminary scope of work in English |
| The importance of culture in explaining individual behaviour and economic success was recognized several centuries ago by, for example, Adam Smith, a century later by Karl Max and Max Weber. However, the marginalist revolution in economics sidelined cultural factors for some time. Today, the importance of culture has become widely recognized as it is illustrated by the main four areas of study: (1) Entrepreneurial culture, (2) Trust, (3) International business, (4) Comparative corporate governance (Beugelsdijk and Maseland 2011). Events such as the spectacular rise of East Asia or communism’s demise contributed to the perception that models assuming full rationality and efficient markets are able to provide a very limited explanation of economic development. In this context, culture is seen as a possible “deep” determinant of economic development (Acemoglu et al. 2001; Hall and Jones 1999; La Porta et al. 2008; Rodrik et al. 2004).
Expected Contribution: The expected contribution is to evaluate the relationship between culture and economic development within the rigorous framework of BMA (IVBMA). This technique gives us more confidence in the results because we simultaneously deal with model uncertainty and omitted variable bias. Furthermore, the endogeneity of culture will be addressed and at the time the thesis will try to avoid measurement issues. I. Introduction II. Literature Review III. Bayesian Model Averaging IV. Data V. Model VI. Assessment of the Results VII. Conclusion |