Economics Breeds Culture

UB Economics Working Papers E14/312

36 Pages Posted: 30 May 2014

See all articles by Patricio García Mínguez

Patricio García Mínguez

University of Barcelona - Department of Economic Theory

Ausias Ribo Argemi

University of Barcelona - Department of Economic Theory

Date Written: May 6, 2014

Abstract

Several recent papers document the influence and long lasting effects of technology on preferences. Simultaneously, cultural factors are often invoked to explain heterogeneity in preferences. These two ideas suggest that culture determines the short run equilibrium values of economic variables, but, in the long run, culture changes in response to the underlying economic fundamentals. We build a model in which preferences are endogenous and the diversity in preferences (the "cultural" diversity) is explained by the variation in the relevant economic fundamentals. This can help explain observed differences in labor market attachment among groups defined e.g., by citizenship, ethnicity or gender.

Keywords: Endogenous Preferences, Technology, Culture, Labor market participation, Taxes

JEL Classification: D01, J22, J3, Z10

Suggested Citation

García Mínguez, Patricio and Ribo Argemi, Ausias, Economics Breeds Culture (May 6, 2014). UB Economics Working Papers E14/312, Available at SSRN: https://ssrn.com/abstract=2436817 or http://dx.doi.org/10.2139/ssrn.2436817

Patricio García Mínguez (Contact Author)

University of Barcelona - Department of Economic Theory ( email )

Barcelona
Spain

Ausias Ribo Argemi

University of Barcelona - Department of Economic Theory ( email )

Barcelona
Spain

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