Product-based cultural change : is the village global?
Journal of international economics, 2009, Vol. 92, No. 2, pp. 212-230
MAYSTRE, Nicolas, OLIVIER, Jacques, THOENIG, Mathias, VERDIER, Thierry, Product-based cultural change : is the village global?, Journal of international economics, 2009, Vol. 92, No. 2, pp. 212-230 - https://hdl.handle.net/1814/42238
Retrieved from Cadmus, EUI Research Repository
We provide a model of product-based cultural change where trade integration leads to cultural convergence. A standard trade model of Dixit–Stiglitz monopolistic competition is coupled with a micro-founded model of cultural dynamics. We show that access to varieties that are attached to a global cultural type changes the incentives of parents to socialize their children and transmit their type. The resulting increase in agents of the global cultural type leads to a magnification of the initial shock. A striking feature of the model is that even temporary shocks to openness may have permanent effects through the changing distribution of preferences in the economy.
Cadmus permanent link: https://hdl.handle.net/1814/42238
Full-text via DOI: 10.1016/j.jinteco.2013.10.005
Files associated with this item
There are no files associated with this item.