tailieunhanh - Social Attitudes and Economic Development: An Epidemiological Approach

Much of this debate reflects differences in analysis scope (Litman 2009b). Highway expansion advocates tend to focus on traffic congestion reduction objectives and ignore the negative effects of induced vehicle travel and sprawl. 1 Advocates of investments in alternative modes tend to consider a wider range of impacts and objectives, including traffic congestion reduction, parking cost savings, consumer cost savings, accident reductions, improved mobility for non-drivers, energy conservation, pollution reductions, and public fitness and health. . | Social Attitudes and Economic Development An Epidemiological Approach1 Yann Algan2 and Pierre Cahuc3 First version December 2006. This version May 2007. 1We thank Philippe Aghion Olivier Blanchard Eve Caroli Francis Kramarz and Thomas Philippon for comments. We are very grateful to Luigi Guiso who gave us very helpful comments on the empirical strategy. We are also indebted to Christian Morrisson and Fabrice Murtin who provided historical data on education. 2CEPREMAP Paris School of Economics University Paris East email . 3University Paris 1 CREST-INSEE IZA CEPR. Corresponding author CREST-INSEE Timbre J 360 15 Boulevard Gabriel-Peri 92245 Malakoff France. Email cahuc@. Abstract In this paper we develop a new empirical approach to uncover the causal link from social attitudes to economic development. We first show that social attitudes of second-generation Americans are significantly influenced by the country of origin of their forebears. In the spirit of the epidemiology literature we interpret this phenomenon as the consequence of a causal effect of inherited social attitudes. This leads us to use the social attitudes of second-generation Americans as an instrument for the social attitudes in the home country of their parents to identify the causal effect of inherited social attitudes on economic development. This strategy allows us to isolate the specific contribution of social attitudes relatively to other traditional candidates such as institutions and geography by controlling for country fixed effects. We find that inherited social attitudes have explained a substantial share of economic development on a a sample of 30 countries since the post-war by improving total factor productivity and the accumulation of human and physical capital. Keywords Social attitudes trust economic development. JEL codes O10 F10 P10 N13. 1 Introduction What are the fundamental causes of large differences in income per capita across countries Although there

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