Guido Tabellini
Culture and Institutions: Economic Development in the Regions of Europe
culture causal effect economic development data european regions suggest culture measured indicators individual values beliefs trust respect others confidence individual self determination isolate exogenous variation culture rely two historical variables used instruments literacy rate end 19th century political institutions place past several centuries political social history europe provides rich source variation two variables regional level exogenous component culture due history strongly correlated current regional economic development controlling contemporaneous education urbanization rates around 1850 national effects