Incompatible European Partners? Cultural Predispositions and Household Financial Behavior

OMI Seminar Series

Abstract: The Eurozone fiscal crisis has created pressure for institutional harmonization, but skeptics arguethat cultural predispositions can prevent convergence in behavior. Our paper derives a robustcultural classification of European countries and utilizes unique data on natives and immigrants.Classification based on genetic distance or on Hofstede’s cultural dimensions fails to identify asingle ‘southern’ culture but points to a ‘northern’ culture. Our findings support the relevance ofcultural predispositions for financial behavior; and convergence of behavior over time in the faceof common institutions, even for countries with great cultural distance from the country thatcreated those institutions.


Michael Haliassos (Goethe University Frankfurt)

Tuesday, October 27, 2015 - 12:30
to 13:30