Date Added: Sep 2009
The authors integrate a social norm which associates status to accumulation of capital and consumption into a simple model of endogenous growth. They show that societies which place a greater weight of cultural values on stock of accumulated capital as opposed to consumption will experience fast growth. The results are consistent with those obtained by Baumol (1990) in the context of entrepreneurship and by Fershtman and Weiss (1991). It is becoming increasingly apparent that, in order to escape the fetters imposed by the Neoclassical paradigm, the economics of growth and development must welcome, or at least accept, the input of related disciplines, be they, History, Sociology, Anthropology, or Political Sciences.