James a robinson harvard the emergence of modern

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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 September Historical 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 September Historical 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 principal component. For the second variable you might think of it as inspired by Putnam’ s 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 September Historical 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 September Historical 9 / 24 The Work of Putnam This research is heavily inspired by Robert Putnam’ book Making s Democracy Work, where he argued that it was variation in ‘ social 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 ‘ amoral familist’ " (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.

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