Abstract:This paper discusses the inclusion of cultural factors in economic analysis on a theoretical as well as on an empirical level. Using the example of catch-up development, it is demonstrated how a cultural approach to economics can advance our understanding of economic phenomena. Since culture, which we define as the interplay between formal rules and informal constraints, is learned by individuals during their socialization, the role of individuals is incorporated into the analysis. Consequently, the paper inve… Show more
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