Publication

Cultural change, risk-taking behavior and implications for economic development

Klasing, M. J., Sep-2014, In : Journal of Development Economics. 110, p. 158-169 12 p.

Research output: Contribution to journalArticleAcademicpeer-review

APA

Klasing, M. J. (2014). Cultural change, risk-taking behavior and implications for economic development. Journal of Development Economics, 110, 158-169. https://doi.org/10.1016/j.jdeveco.2014.06.001

Author

Klasing, Mariko J. / Cultural change, risk-taking behavior and implications for economic development. In: Journal of Development Economics. 2014 ; Vol. 110. pp. 158-169.

Harvard

Klasing, MJ 2014, 'Cultural change, risk-taking behavior and implications for economic development', Journal of Development Economics, vol. 110, pp. 158-169. https://doi.org/10.1016/j.jdeveco.2014.06.001

Standard

Cultural change, risk-taking behavior and implications for economic development. / Klasing, Mariko J.

In: Journal of Development Economics, Vol. 110, 09.2014, p. 158-169.

Research output: Contribution to journalArticleAcademicpeer-review

Vancouver

Klasing MJ. Cultural change, risk-taking behavior and implications for economic development. Journal of Development Economics. 2014 Sep;110:158-169. https://doi.org/10.1016/j.jdeveco.2014.06.001


BibTeX

@article{7bb3d850746e48a0a3a7f22f1d619b43,
title = "Cultural change, risk-taking behavior and implications for economic development",
abstract = "This research studies the dynamic interplay between the evolution of risk attitudes and the process of economic development. This is achieved by integrating an endogenous growth model with a cultural transmission mechanism that captures how parents shape the risk attitudes of their children in response to economic incentives. The model predicts that in an economy in which the material benefits associated with risky entrepreneurial activity are high, agents will over time develop more risk tolerant attitudes, which in turn will speed up the rate of economic growth. It is shown that policy interventions aiming at supporting entrepreneurial activity can play an important role for overcoming the forces of risk aversion and promoting long-run economic growth. Furthermore, the paper highlights how by inducing cultural change, such policy interventions may quantitatively have larger effects than what would be predicted by more standard models of endogenous growth.",
keywords = "Endogenous growth, Earnings risk, Risk aversion, Cultural transmission",
author = "Klasing, {Mariko J.}",
year = "2014",
month = "9",
doi = "10.1016/j.jdeveco.2014.06.001",
language = "English",
volume = "110",
pages = "158--169",
journal = "Journal of Development Economics",
issn = "0304-3878",
publisher = "ELSEVIER SCIENCE BV",

}

RIS

TY - JOUR

T1 - Cultural change, risk-taking behavior and implications for economic development

AU - Klasing, Mariko J.

PY - 2014/9

Y1 - 2014/9

N2 - This research studies the dynamic interplay between the evolution of risk attitudes and the process of economic development. This is achieved by integrating an endogenous growth model with a cultural transmission mechanism that captures how parents shape the risk attitudes of their children in response to economic incentives. The model predicts that in an economy in which the material benefits associated with risky entrepreneurial activity are high, agents will over time develop more risk tolerant attitudes, which in turn will speed up the rate of economic growth. It is shown that policy interventions aiming at supporting entrepreneurial activity can play an important role for overcoming the forces of risk aversion and promoting long-run economic growth. Furthermore, the paper highlights how by inducing cultural change, such policy interventions may quantitatively have larger effects than what would be predicted by more standard models of endogenous growth.

AB - This research studies the dynamic interplay between the evolution of risk attitudes and the process of economic development. This is achieved by integrating an endogenous growth model with a cultural transmission mechanism that captures how parents shape the risk attitudes of their children in response to economic incentives. The model predicts that in an economy in which the material benefits associated with risky entrepreneurial activity are high, agents will over time develop more risk tolerant attitudes, which in turn will speed up the rate of economic growth. It is shown that policy interventions aiming at supporting entrepreneurial activity can play an important role for overcoming the forces of risk aversion and promoting long-run economic growth. Furthermore, the paper highlights how by inducing cultural change, such policy interventions may quantitatively have larger effects than what would be predicted by more standard models of endogenous growth.

KW - Endogenous growth, Earnings risk, Risk aversion, Cultural transmission

U2 - 10.1016/j.jdeveco.2014.06.001

DO - 10.1016/j.jdeveco.2014.06.001

M3 - Article

VL - 110

SP - 158

EP - 169

JO - Journal of Development Economics

JF - Journal of Development Economics

SN - 0304-3878

ER -

ID: 15611410