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1、CHAPTERONECulture,Entrepreneurship,andGrowthMatthiasDoepke*andFabrizioZilibotti*DepartmentofEconomics,NorthwesternUniversityandNBER,2001SheridanRoad,Evanston,IL60208,USADepartmentofEconomics,UniversityofZurich,Muehlebachstrasse86,Zurich,CH8008,SwitzerlandAbstrac
2、tWediscussthetwo-waylinkbetweencultureandeconomicgrowth.Wepresentamodelofendoge-noustechnicalchangewheregrowthisdrivenbytheinnovativeactivityofentrepreneurs.Entrepre-neurshipisriskyandrequiresinvestmentsthataffectthesteepnessofthelifetimeconsumptionprofile.Asacons
3、equence,theoccupationalchoiceofentrepreneurshiphingesonrisktoleranceandpatience.Parentsexpectingtheirchildrentobecomeentrepreneurshaveanincentivetoinstillthesetwovaluesintheirchildren.CulturaltransmissionisBeckerian,i.e.parentsaredrivenbythedesiretomaximizetheir
4、children’shappiness.Wealsoconsider,inanextension,apaternalisticmotiveforpreferencetransmission.Thegrowthrateoftheeconomydependsonthefractionofthepopulationchoosinganentrepreneurialcareer.Howmanyentrepreneursthereareinasocietyhinges,inturn,onparentalinvestmentsin
5、children’spatienceandrisktolerance.Therecanbemultiplebalancedgrowthpaths,whereinfaster-growingcountriesmorepeopleexhibitan“entrepreneurialspirit.”Wediscussapplica-tionsofmodelsofendogenouspreferencestotheanalysisofsocio-economictransformations,suchastheBritishIn
6、dustrialRevolution.Wealsodiscussempiricalstudiesdocumentingtheimportanceofcultureandpreferenceheterogeneityforeconomicgrowth.KeywordsCulture,Entrepreneurship,Innovation,Economicgrowth,Endogenouspreferences,IntergenerationalpreferencetransmissionJELClassificationC
7、odesJ24,L26,N30,O10,O32,O33,O43,Z101.1.INTRODUCTIONTherelationshipbetweeneconomicdevelopmentandculturebroadlydefinedasthesetofpreferences,values,andbeliefsthatareatleastpartiallylearnedhasattractedincreasingattentionintheeconomicliteratureoverthelastdecade.Thenot
8、ionthataccountingforculturalheterogeneityisimportantforexplainingindividualbehaviorandeconomicsuccesswasafamiliaronetoclassicaleconomists.Forinstance,Smith(1776)descr
