Ulric B. and Evelyn L. Bray Seminar in Political Economy
What accounts for economic prosperity? What stands at its origin? Is it geography? Human capital? Culture? Institutions? In this paper we argue that searching for a single univariate cause has little meaning and we study the joint evolution of culture and institutions and their joint effects on economic prosperity. Needless to say non-linearities arise everywhere: not a subject for regression analysis. We introduce the notion of cultural multiplier of the economic effects of institutions.