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Unformatted text preview: e variable obedience is the proportion of people who chose
obedience from this list. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and16, 2008 Analysis
6 / 24 Measuring Culture #4 These variables are aggregated by principal components to create
pc_culture. Trust, control and respect are positively correlated with
this (good for development) while obedience is negatively correlated
with it (bad for development). James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and16, 2008 Analysis
7 / 24 Identi…cation Tabellini proposes two sources of variation of his measures of culture.
The …rst is literacy rates in the late 19th century.
The second is the historical pattern of political institutions,
speci…cally the “constraints on the executive” variable from the Polity
dataset. Various dates are averaged or aggregated by using the …rst
For the second variable you might think of it as inspired by Putnam’
book on Italy – where the Normans invaded, there were worse
political institutions James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and16, 2008 Analysis
8 / 24 Source: Guido Tabellini (2005) “Culture and Institutions: Economic Development
in the Regions of Europe” Results and Issues The IV estimates suggest that culture as measured has a signi…cant
causal e¤ect on income per-capita.
The key exclusion restriction is that historical measures of education
and political institutions which cause variation in culture are
excludable from the second stage regression where income per-capita
is the dependent variable.
The main threat to this identi…cation strategy is that there are
persistent omitted variables which help to explain why some parts of
Europe had good political institutions in the 18th century, high
education in the 19th and are rich today. If we cannot control for
these omitted variables then these historical variables may be picking
up their e¤ects and the exclusion restriction will be violated. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and16, 2008 Analysis
9 / 24 The Work of Putnam
This research is heavily inspired by Robert Putnam’ book Making
Democracy Work, where he argued that it was variation in ‘
capital’within Italy which explained variation in governance.
Putnam in turn was heavily inspired by the seminal book The Moral
Basis of a Backward Society (1958) written by Edward Ban…eld.
Ban…eld undertook …eldwork in the southern Italian town of
Chiaromonte (referred to as Montegrano in the book).
He tried to understand why the town was so poor and so badly
governed and formulated the following hypothesis:
“The hypothesis is that the Montegranesi act as if they were
following the rule: Maximize the material, short-run advantage of the
nuclear family; assume that others will do likewise. One whose
behavior is consistent with this rule will be called an ‘
(Ban…eld, 1958, p. 95)
James A. Robinson (Harvard) The Emergence of M...
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.
- Fall '09