Arbeitspapier

Culture, Institutions & the Long Divergence

Recent theories of the Long Divergence between Middle Eastern and Western European economies focus on Middle Eastern (over-)reliance on religious legitimacy, use of slave soldiers, and persistence of restrictive proscriptions of religious (Islamic) law. These theories take as exogenous the cultural values that complement the prevailing institutions. As a result, they miss the role of cultural values in either supporting the persistence of or inducing change in the economic and institutional environment. In this paper, we address these issues by modeling the joint evolution of institutions and culture. In doing so, we place the various hypotheses of economic divergence into one, unifying framework. We highlight the role that cultural transmission plays in reinforcing institutional evolution toward either theocratic or secular states. We extend the model to shed light on political decentralization and technological change in the two regions.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 8900

Classification
Wirtschaft
Economic Development: General
Capitalist Systems: Political Economy
Other Economic Systems: Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Europe: 1913-
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Asia including Middle East
Cultural Economics: Religion
Technological Change: Choices and Consequences; Diffusion Processes
Subject
long divergence
cultural transmission
institutions
legitimacy
religion

Event
Geistige Schöpfung
(who)
Bisin, Alberto
Rubin, Jared
Seror, Avner
Verdier, Thierry
Event
Veröffentlichung
(who)
Center for Economic Studies and Ifo Institute (CESifo)
(where)
Munich
(when)
2021

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bisin, Alberto
  • Rubin, Jared
  • Seror, Avner
  • Verdier, Thierry
  • Center for Economic Studies and Ifo Institute (CESifo)

Time of origin

  • 2021

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