The Deep Roots of Economic Development in the U.S. States

Abstract

The “Deep Roots” literature investigates the effects of deep cultural variables on outcomes. We attempt to identify how these deep cultural variables actually affect per capita output by expanding Putterman and Weil’s (2010) inquiry on the effects of State History and Agricultural History to the populations of the fifty U.S. States. In the course of this application, we uncover two distinct points while giving a qualified validation of Putterman and Weil. First, the effects of deep roots on outcomes are only clearly apparent after controlling for the percent of the population that is non-Hispanic white because that population is negatively correlated with per capita income after controlling for State History or Agricultural History. Second, while we find some support of the conclusion that deep roots impact outcomes by altering institutions, deep roots do not have any impact on liberal economic institutions at the state level.

Keywords: Deep Roots, State History, Agricultural History, Institutions, Economics of Migration

JEL Classification: O15, O43, Z13