Culture though slower changing is also not exogenous

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Unformatted text preview: within societies. Culture, though slower changing, is also not exogenous. Even though geography is exogenous to a large extent, this also does not mean that a correlation between a geographical variable and an outcome of interest must be a causal one – geographical outcomes could be correlated with other omitted variables. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and2, 2009 September Historical Analysis 12 / 19 Cute Pewter Tableware – look at the cheese and grapes soaking up lead… Dynamic Relationships Proximate and (endogenous) fundamental factors interact dynamically. For instance, Modernization theory suggests that as countries become more educated they tend to have more democratic political institutions. But see next slide. . . More generally the types of institutions a society might have may depend on the stock of assets that it has and there may be vicious or virtuous circles. What we emphasize may di¤er in di¤erent circumstances, but we may be able to use natural experiments to determine wh...
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.

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