On the Causes and Consequences of Cross-Cultural Differences

Abstract

Abstract This review summarizes a recent body of research within economics that seeks to explain contemporary cross-societal differences in culture. One line of research traces the effects of determinants in the distant past and studies how they affect the evolution of cultural traits and their transmission across multiple generations. Another line takes a shorter-term and more micro-level perspective to study how events faced by an individual or group affect their culture. Most recently, this line of inquiry has turned to the question of how cultural traits interact with economic factors, in particular how cultural differences can inform the optimal design of economic and social policy and how such policies can, in turn, shape the evolution of cultural traits.

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