Discrimination can be costly for both victims and perpetrators. This column uses the variation of historical Jewish persecution across German counties to proxy for localised distrust in financial markets. Persecution reduces the average stock market participation rate of households by 7.5%–12%. This striking effect is stable over time, across cohorts, and across education levels. The effect survives when comparing only geographically close counties. It suggests that the persecution of minorities may negatively affect societal wealth even far into the future through the channel of intergenerationally transmitted investment norms.
Francesco D'Acunto, Marcel Prokopczuk, Michael Weber, Thursday, February 26, 2015
Daniel Houser, John List, Marco Piovesan, Anya Samek, Joachim Winter, Monday, February 23, 2015
Dishonesty is a pervasive and costly phenomenon. This column reports the results of a lab experiment in which parents had an opportunity to behave dishonestly. Parents cheated the most when the prize was for their child and their child was not present. Parents cheated little when their child was present, but were more likely to cheat in front of sons than in front of daughters. The latter finding may help to explain why women attach greater importance to moral norms and are more honest.
Tim Besley, Anders Jensen, Torsten Persson, Thursday, February 12, 2015
The Eurozone sovereign debt crisis has highlighted the problem of tax evasion. This column examines the effect of social norms on tax compliance using the UK poll tax as a natural experiment. Comparing councils where tax evasion spiked more during the poll-tax period to those where it spiked less, there was no systematic difference before the poll-tax period. However, once the poll tax was abolished, tax evasion remained higher in the former group, suggesting that high poll-tax non-compliance created a persistent norm of non-compliance.
Daron Acemoglu, Matthew O. Jackson, Friday, September 19, 2014
Social norms shape interactions but can be in conflict with new laws, often making such laws ineffective. This column presents new research on the interplay of laws and norms. High law-breaking induces less private cooperation, increasing the law-breaking further. For a successful change in behaviour, gradual imposition of new laws is recommended. An important aspect is that these new laws should not be in a strong conflict with the existing norms.
John Helliwell, Shun Wang, Jinwen Xu, Wednesday, March 12, 2014
Social norms have been shown to have important effects on economic outcomes. This column discusses new evidence showing that social norms are deeply rooted in long-standing cultures, but do evolve in reaction to major changes. It draws on a fully global sample involving migrants in more than 130 countries, using seven waves of the Gallup World Poll.
Joan Costa-i-Font, Friday, April 12, 2013
Are healthy lifestyles purely about people’s personal choices? Can we explain why specific people are fit, non-smokers and risk-averse? This column argues that policymaking can incentivise health behaviour but that monetary incentives are not the only approach. Academics and policymakers should aim to influence social norms and society’s role models when monetary incentives are not enough.
Daron Acemoglu, Matthew O. Jackson, Monday, June 13, 2011
Economists are increasingly recognising the importance of social norms in determining economic outcomes. While some argue that these norms are set in stone, this column introduces a new framework exploring how these norms emerge, how they can change, and how leadership by individuals can play a pivotal role.
Jeremy Greenwood, Jesús Fernández-Villaverde, Nezih Guner, Saturday, February 20, 2010
Attitudes to sex have changed dramatically over the last hundred years. This column presents a model where socialisation – the passing on of norms and ideologies by parents and institutions such as the church or state – is determined by the technological environment in which people live. Contraception has reduced the chance of unwanted pregnancies from premarital sex, and this in turn has changed social attitudes.