nhaliday + divergence + migration   10

The Long-Run Weight of Communism or the Weight of LongRun History?
This study provides evidence that culture understood as values and beliefs moves very slowly. Despite massive institutional change, values and beliefs in transition countries have not changed much over the last 20 years. Evidence suggests that culture is affected by the long run historical past, in particular the participation in empires for over 100 years. Current institutional evolutions in transition countries might be more affected by their long run past than by the communist experience of the twentieth century
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august 2017 by nhaliday
Inherited Trust and Growth - American Economic Association
This paper develops a new method to uncover the causal effect of trust on economic growth by focusing on the inherited component of trust and its time variation. We show that inherited trust of descendants of US immigrants is significantly influenced by the country of origin and the timing of arrival of their forebears. We thus use the inherited trust of descendants of US immigrants as a time-varying measure of inherited trust in their country of origin. This strategy allows to identify the sizeable causal impact of inherited trust on worldwide growth during the twentieth century by controlling for country fixed effects. (JEL N11, N12, N31, N32, O47, Z13)

key data:
Table 1, Figure 1, Figure 3, Figure 4

Trust Assimilation in the United States, Bryan Caplan: http://econlog.econlib.org/archives/2017/05/trust_assimilat.html

How Durable are Social Norms? Immigrant Trust and Generosity in 132 Countries: http://www.nber.org/papers/w19855
We find that migrants tend to make social trust assessments that mainly reflect conditions in the country where they now live, but they also reveal a significant influence from their countries of origin. The latter effect is one-third as important as the effect of local conditions. We also find that the altruistic behavior of migrants, as measured by the frequency of their donations in their new countries, is strongly determined by social norms in their new countries, while also retaining some effect of the levels of generosity found in their birth countries. To show that the durability of social norms is not simply due to a failure to recognize new circumstances, we demonstrate that there are no footprint effects for immigrants’ confidence in political institutions. Taken together, these findings support the notion that social norms are deeply rooted in long-standing cultures, yet are nonetheless subject to adaptation when there are major changes in the surrounding circumstances and environment.

The autocratic roots of social distrust: http://sci-hub.tw/https://www.sciencedirect.com/science/article/pii/S0147596717300951
This paper identifies a new source of social distrust: an individual’s autocratic
origin.
 Individuals whose ancestors migrated from countries with higher autocracy
levels are less likely to trust others and to vote in presidential elections in the
U.S.
 The impact of autocratic culture on trust lasts for at least three generations
whereas the impact on voting disappears after one generation.
 The results are not driven by selection into migration or other factors such as the
GDP, education, or the strength of family ties in home countries in the U.S.
 Autocratic culture also has similar impacts on trust and voting across Europe.
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july 2017 by nhaliday
Corrupting cooperation and how anti-corruption strategies may backfire | Nature Human Behaviour
https://images.nature.com/original/nature-assets/nathumbehav/2017/s41562-017-0138/extref/s41562-017-0138-s1.pdf
Exposure to Norms: https://images.nature.com/original/nature-assets/nathumbehav/2017/s41562-017-0138/extref/s41562-017-0138-s1.pdf#page=114
Here we test how exposure to corruption norms affect behavior in our game. We do so by using our exposure score (a mean of the corruption perceptions of the countries the participant has lived in) and the heritage corruption score (a mean of the corruption perceptions of the countries the participant has an ethnic heritage). Since there is no incentive to offer bribes or contribute, except when compelled to do so by punishment, we predict that exposure to norms should primarily affect Leader decisions. Nonetheless, internalized norms may also affect the behavior of players in contributing and bribing.

...

The correlation between the direct exposure and heritage measures of corruption is r = 0.67, p < .001.

...

Then we see that direct exposure to corruption norms results in increased corrupt behavior—i.e. in our Canadian sample, those who have lived in corrupt countries from which they do not derive their heritage behave in more corrupt ways.

hard to interpret

https://twitter.com/Evolving_Moloch/status/884477414100697092
http://psych.ubc.ca/when-less-is-best/

I don't think the solution is to just do nothing. Should look to history for ideas; process of "getting to Denmark" took centuries in NW Euro. Try to replicate and don't expect fast results.

Trust and Bribery: The Role of the Quid Pro Quo and the Link with Crime: http://www.nber.org/papers/w10510
I study data on bribes actually paid by individuals to public officials, viewing the results through a theoretical lens that considers the implications of trust networks. A bond of trust may permit an implicit quid pro quo to substitute for a bribe, which reduces corruption. Appropriate networks are more easily established in small towns, by long-term residents of areas with many other long-term residents, and by individuals in regions with many residents their own age. I confirm that the prevalence of bribery is lower under these circumstances, using the International Crime Victim Surveys. I also find that older people, who have had time to develop a network, bribe less. These results highlight the uphill nature of the battle against corruption faced by policy-makers in rapidly urbanizing countries with high fertility. I show that victims of (other) crimes bribe all types of public officials more than non-victims, and argue that both their victimization and bribery stem from a distrustful environment.

Kinship, Fractionalization and Corruption: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2847222
The theory of kin selection provides a straightforward justification for norms of nepotism and favoritism among relatives; more subtly, it also implies that the returns to such norms may be influenced by mating practices. Specifically, in societies with high levels of sub-ethnic fractionalization, where endogamous (and consanguineous) mating within kin-group, clan and tribe increases the local relatedness of individuals, the relative returns to norms of nepotism and favoritism are high. In societies with exogamous marriage practices, the relative returns to norms of impartial cooperation with non-relatives and strangers are increased. Using cross-country and within-country regression analyses and a cross-country lab experiment, we provide evidence for this account.

Ethnic favouritism: Not just an African phenomenon: http://voxeu.org/article/ethnic-favouritism-not-just-african-phenomenon
Ethnic favouritism is a global phenomenon
We find robust evidence for ethnic favouritism – ethnographic regions that are the current political leader’s ethnic homeland enjoy 7%-10% more intense night-time light, corresponding to 2%-3% higher regional GDP. Furthermore, we show that ethnic favouritism extends to ethnic groups that are linguistically close to the political leader.

Most significantly, these effects are as strong outside of Africa as they are within, challenging the preconception that ethnic favouritism is mainly or even entirely a sub-Saharan African phenomenon. For example, Bolivian presidents tended to favour areas populated by European descendants and Criollos, largely at the expense of the indigenous population. After the election of Evo Morales, a member of the indigenous Ayamara ethnic group, luminosity in indigenous areas grew substantially. Notably, critics suggest Morales gave special attention to the interests and values of the Ayamara at the expense of other indigenous peoples (e.g. Albro 2010, Postero 2010).

Democratisation is not a panacea
Our results further suggest that, while democratic institutions have a weak tendency to reduce ethnic favouritism, their effect is limited. In particular, a change from autocratic regimes to weak democracies does not seem to reduce ethnic favouritism (and may even increase it).

This result could in part be explained by political leaders’ motivations for engaging in ethnic favouritism. We find that the practice intensifies around election years in which the political leader's office is contested, suggesting that leaders may target policies towards their ethnic homelands to improve their re-election prospects, and not solely out of co-ethnic altruism. To the extent that political leaders engage in ethnic favouritism for electoral purposes, democratisation is not likely to be effective in curbing the practice.

Facebook’s war on free will: https://www.theguardian.com/technology/2017/sep/19/facebooks-war-on-free-will
Though Facebook will occasionally talk about the transparency of governments and corporations, what it really wants to advance is the transparency of individuals – or what it has called, at various moments, “radical transparency” or “ultimate transparency”. The theory holds that the sunshine of sharing our intimate details will disinfect the moral mess of our lives. With the looming threat that our embarrassing information will be broadcast, we’ll behave better. And perhaps the ubiquity of incriminating photos and damning revelations will prod us to become more tolerant of one another’s sins. “The days of you having a different image for your work friends or co-workers and for the other people you know are probably coming to an end pretty quickly,” Zuckerberg has said. “Having two identities for yourself is an example of a lack of integrity.”

The point is that Facebook has a strong, paternalistic view on what’s best for you, and it’s trying to transport you there. “To get people to this point where there’s more openness – that’s a big challenge. But I think we’ll do it,” Zuckerberg has said. He has reason to believe that he will achieve that goal. With its size, Facebook has amassed outsized powers. “In a lot of ways Facebook is more like a government than a traditional company,” Zuckerberg has said. “We have this large community of people, and more than other technology companies we’re really setting policies.”

Facebook and the Destruction of Private Life: http://www.socialmatter.net/2014/12/30/facebook-and-the-destruction-of-private-life/
- HENRY DAMPIER

The key value of privacy, which tends to be lost amid all the technological babble about the concept, is that it makes social cooperation more feasible among people who disagree, share different tastes, or fundamental points of view.

...

This is especially an issue with democracy. The reason why the United States has anonymous voting laws is because without them, people are persecuted for their party affiliations by people with rival party loyalties. This being forgotten, the age of Facebook and similar technologies has opened up ordinary people to this sort of ordinary political persecution. Moderating influences like that of the respect for privacy put a brake on some of the more rapacious, violent aspects of party politics.

...

The impulse for this comes less from the availability of the technology, and more because of the preexisting social trends. When there is a family life, there is communication and closeness within the family.

With more people living without a family life, they go to the public square to get their needs for social validation met. This doesn’t work so well, because strangers have no skin in the life of the atomized individual that only exists as an image on their screens.
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july 2017 by nhaliday
Double world GDP | Open Borders: The Case
Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?: https://www.aeaweb.org/articles?id=10.1257/jep.25.3.83
https://openborders.info/innovation-case/
https://www.economist.com/news/world-if/21724907-yes-it-would-be-disruptive-potential-gains-are-so-vast-objectors-could-be-bribed
The Openness-Equality Trade-Off in Global Redistribution: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2509305
https://www.wsj.com/articles/opening-our-borders-would-overwhelm-america-1492366053
Immigration, Justice, and Prosperity: http://quillette.com/2017/07/29/immigration-justice-prosperity/

Some Countries Are Much Richer Than Others. Is That Unjust?: http://quillette.com/2017/07/23/countries-much-richer-others-unjust/
But we shouldn’t automatically assume that wealth disparities across the world are unjust and that the developed world owes aid as a matter of justice. This is because the best way to make sense of the Great Divergence is that certain economic and political institutions, namely those that facilitated economic growth, arose in some countries and not others. Thus perhaps the benevolent among us should also try to encourage – by example rather than force – the development of such institutions in places where they do not exist.

An Argument Against Open Borders and Liberal Hubris: http://quillette.com/2017/08/27/argument-open-borders-liberal-hubris/
We do not have open borders but we are experiencing unprecedented demographic change. What progressives should remember is that civilisation is not a science laboratory. The consequences of failed experiments endure. That is the main virtue of gradual change; we can test new waters and not leap into their depths.

A Radical Solution to Global Income Inequality: Make the U.S. More Like Qatar: https://newrepublic.com/article/120179/how-reduce-global-income-inequality-open-immigration-policies

Why nation-states are good: https://aeon.co/essays/capitalists-need-the-nation-state-more-than-it-needs-them
The nation-state remains the best foundation for capitalism, and hyper-globalisation risks destroying it
- Dani Rodrik
Given the non-uniqueness of practices and institutions enabling capitalism, it’s not surprising that nation-states also resolve key social trade-offs differently. The world does not agree on how to balance equality against opportunity, economic security against innovation, health and environmental risks against technological innovation, stability against dynamism, economic outcomes against social and cultural values, and many other consequences of institutional choice. Developing nations have different institutional requirements than rich nations. There are, in short, strong arguments against global institutional harmonisation.
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june 2017 by nhaliday
Was the Wealth of Nations Determined in 1000 BC?
Our most interesting, strong, and robust results are for the association of 1500 AD technology with per capita income and technology adoption today. We also find robust and significant technological persistence from 1000 BC to 0 AD, and from 0 AD to 1500 AD.

migration-adjusted ancestry predicts current economic growth and technology adoption today

https://economix.blogs.nytimes.com/2010/08/02/was-todays-poverty-determined-in-1000-b-c/

Putterman-Weil:
Post-1500 Population Flows and the Long Run Determinants of Economic Growth and Inequality: http://www.nber.org/papers/w14448
Persistence of Fortune: Accounting for Population Movements, There Was No Post-Columbian Reversal: http://sci-hub.tw/10.1257/mac.6.3.1
Extended State History Index: https://sites.google.com/site/econolaols/extended-state-history-index
Description:
The data set extends and replaces previous versions of the State Antiquity Index (originally created by Bockstette, Chanda and Putterman, 2002). The updated data extends the previous Statehist data into the years before 1 CE, to the first states in Mesopotamia (in the fourth millennium BCE), along with filling in the years 1951 – 2000 CE that were left out of past versions of the Statehist data.
The construction of the index follows the principles developed by Bockstette et al (2002). First, the duration of state existence is established for each territory defined by modern-day country borders. Second, this duration is divided into 50-year periods. For each half-century from the first period (state emergence) onwards, the authors assign scores to reflect three dimensions of state presence, based on the following questions: 1) Is there a government above the tribal level? 2) Is this government foreign or locally based? 3) How much of the territory of the modern country was ruled by this government?

Creators: Oana Borcan, Ola Olsson & Louis Putterman

State History and Economic Development: Evidence from Six Millennia∗: https://drive.google.com/file/d/1cifUljlPpoURL7VPOQRGF5q9H6zgVFXe/view
The presence of a state is one of the most reliable historical predictors of social and economic development. In this article, we complete the coding of an extant indicator of state presence from 3500 BCE forward for almost all but the smallest countries of the world today. We outline a theoretical framework where accumulated state experience increases aggregate productivity in individual countries but where newer or relatively inexperienced states can reach a higher productivity maximum by learning from the experience of older states. The predicted pattern of comparative development is tested in an empirical analysis where we introduce our extended state history variable. Our key finding is that the current level of economic development across countries has a hump-shaped relationship with accumulated state history.

nonlinearity confirmed in this other paper:
State and Development: A Historical Study of Europe from 0 AD to 2000 AD: https://ideas.repec.org/p/hic/wpaper/219.html
After addressing conceptual and practical concerns on its construction, we present a measure of the mean duration of state rule that is aimed at resolving some of these issues. We then present our findings on the relationship between our measure and local development, drawing from observations in Europe spanning from 0 AD to 2000 AD. We find that during this period, the mean duration of state rule and the local income level have a nonlinear, inverse U-shaped relationship, controlling for a set of historical, geographic and socioeconomic factors. Regions that have historically experienced short or long duration of state rule on average lag behind in their local wealth today, while those that have experienced medium-duration state rule on average fare better.

Figure 1 shows all borders that existed during this period
Figure 4 shows quadratic fit

I wonder if U-shape is due to Ibn Kaldun-Turchin style effect on asabiya? They suggest sunk costs and ossified institutions.
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march 2017 by nhaliday
The Uniqueness of Italian Internal Divergence | Notes On Liberty
Measuring Productivity Dispersion: Lessons From Counting One-Hundred Million Ballots: http://cepr.org/active/publications/discussion_papers/dp.php?dpno=12273
We measure output per worker in nearly 8,000 municipalities in the Italian electoral process using ballot counting times in the 2013 general election and two referenda in 2016. We document large productivity dispersion across provinces in this very uniform and low-skill task that involves nearly no technology and requires limited physical capital. Using a development accounting framework, this measure explains up to half of the firm-level productivity dispersion across Italian provinces and more than half the north-south productivity gap in Italy. We explore potential drivers of our measure of labor efficiency and find that its association with measures of work ethic and trust is particularly robust.

Interregional Migration, Human Capital Externalities and Unemployment Dynamics: Evidence from Italian Provinces: https://www.econstor.eu/bitstream/10419/168560/1/Econstor.pdf
Using longitudinal data over the years 2002-2011 for 103 NUTS-3 Italian regions, we document that net outflows of human capital from the South to the North have increased the unemployment rate in the South, while it did not affect the unemployment rate in the North. Our analysis contributes to the literature on interregional human capital mobility suggesting that reducing human capital flight from Southern regions should be a priority

EXPLAINING ITALY’S NORTH-SOUTH DIVIDE: Experimental evidence of large differences in social norms of cooperation: http://www.res.org.uk/details/mediabrief/9633311/EXPLAINING-ITALYS-NORTH-SOUTH-DIVIDE-Experimental-evidence-of-large-differences-.html
Amoral Familism, Social Capital, or Trust? The Behavioural Foundations of the Italian North-South Divide: http://conference.iza.org/conference_files/CognitiveSkills_2014/casari_m8572.pdf

At the root of the North‐South cooperation gap in Italy Preferences or beliefs?: https://onlinelibrary.wiley.com/doi/abs/10.1111/ecoj.12608
Southerners share the same pro‐social preferences, but differ both in their belief about cooperativeness and in the aversion to social risk ‐ respectively more pessimistic and stronger among Southerners.

Past dominations, current institutions and the Italian regional economic performance: http://www.siecon.org/online/wp-content/uploads/2012/08/DiLiberto-Sideri.pdf
We study the connection between economic performance and the quality of government institutions for the sample of 103 Italian NUTS3 regions, including new measures of institutional quality calculated using data on the provision of four areas of public service: health, educational infrastructures, environment and energy. In order to address likely endogeneity problems, we use the histories of the different foreign dominations that ruled Italian regions between the 16th and 17th century and over seven hundred years before the creation of the unified Italian State. Our results suggest a significant role of past historical institutions on the current public administration efficiency and show that the latter makes a difference to the economic performance of regions. Overall, our analysis confirms that informal institutions matter for development, and that history can be used to find suitable instruments

Figure 1 – Institutional quality: territorial distribution

Figure 5: Italy during the period 1560-1659 (part A) and corresponding current provinces (part B)

Figure 6 –Former Spanish provinces

Italy’s North-South divide (1861-2011): the state of art: https://mpra.ub.uni-muenchen.de/62209/1/MPRA_paper_62209.pdf
My main argument is summed up in the conclusions: there was a socio-institutional divide between the North and the South of the peninsula, that pre-exists Unification, in some respects grows stronger with it and is never bridged throughout the history of post-unification Italy. Admittedly, some socio-institutional convergence took place in the last decades, but this went in a direction opposite to the desirable one − that is, the North and Italy as a whole have begun to look similar to the South, rather than vice versa.

La cartina dell’ISTAT che mostra dove si leggono più libri in Italia: http://www.ilpost.it/flashes/istat-lettori-regioni-italiane/
ISTAT map showing where more books are read in Italy
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december 2016 by nhaliday

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