Citation

Discussion Paper Details

Please find the details for DP10039 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Incompatible European Partners? Cultural Predispositions and Household Financial Behavior

Author(s): Michael Haliassos, Thomas Jansson and Yigitcan Karabulut

Publication Date: June 2014

Keyword(s): culture, household finance, household portfolios and institutions

Programme Area(s): Financial Economics

Abstract: The Eurozone fiscal crisis has created pressure for institutional harmonization, but skeptics argue that cultural predispositions can prevent convergence in behavior. Our paper derives a robust cultural 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 a single ?southern? culture but points to a ?northern? culture. Our findings support the relevance of cultural predispositions for financial behavior; and convergence of behavior over time in the face of common institutions, even for countries with great cultural distance from the country that created those institutions.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10039

Bibliographic Reference

Haliassos, M, Jansson, T and Karabulut, Y. 2014. 'Incompatible European Partners? Cultural Predispositions and Household Financial Behavior'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10039