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Cultural By Inna Cábelková
eBook (PDF): $8.99
The economic and political outcomes of similar ideas if applied in different countries may substantially differ. In this study we would like to show the importance of cultural values in explaining... More > these differences. We describe the cultural dimensions model originally proposed by Geert Hosftede and mention ways how cultural models are employed in explaining economic and social differences in existing literature. We than continue with the example of prisoner’s dilemma where we show, that Nash equilibria substantially depend on the values of the players and may produce different outcomes in different cultural settings. To support this idea even further we use cultural dimensions of Geert Hofstede to explain the variations of tax revenues, gender based income inequality migration and remittances across countries. We show that cultural values play an important role and therefore should be taken into account in policy making.< Less

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