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Cultural relativism and ideological policy makers in a dynamic model with endogenous preferences

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  • Luigi Bonatti

Abstract

This paper shows that two societies differing because of the people�s initial propensity to devote time and efforts to non-profit activities may never converge. This lack of convergence is interpreted as the tendency of the cultural values and attitudes dominant in each society to perpetuate because of the economic behavior and the social processes that they contribute to elicit. Furthermore, it may not be possible to rank the different steady states toward which these two societies converge according to the Paretian criterion. Finally, the paper examines policies that promote values and attitudes non coincident with those that are currently dominant.

Suggested Citation

  • Luigi Bonatti, 2007. "Cultural relativism and ideological policy makers in a dynamic model with endogenous preferences," Department of Economics Working Papers 0712, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpde:0712
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    More about this item

    Keywords

    Economic policy; Multiple steady states; Social capital; Altruism; Non-profit.;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D60 - Microeconomics - - Welfare Economics - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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