Digital Commons Network^™

Culture Macroeconomics Adjustments And Economic Growth, Schuyler R. Hooper

Honors Theses

This paper argues that culture is the underlying determinant causing the delays and massive social costs sometimes seen as countries attempt to stabilize after experiencing external shocks. While there have been significant ties between culture and economic performance in the past, as in Tabellini (2008) and Licht et al. (2007), this paper argues that culture matters more during periods of disequilibrium than it does during times of equilibrium. The empirical methodology for this paper closely mirrors that of Rodrik (1999), in which he proposed that latent social conflicts and poor institutions of conflict management were the reasons for delayed adjustments …