51. Historical Underpinnings of Institutions: Evidence from the Neolithic Revolution.
- Author
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Paik, Christopher
- Subjects
- *
NEOLITHIC revolution , *INDUSTRIAL revolution , *ARCHAEOLOGICAL site location , *PANEL analysis , *ANCESTORS - Abstract
This paper provides evidence that a certain prehistorical event, namely the Neolithic Revolution, has profoundly affected modern institutions through its impact on group cultures. Using a set of carbon dates of initial agricultural adoption from various Neolithic archaeological sites in Europe, and a panel data of institutional performance measures of Europe during the years prior to the Industrial Revolution, the results show a strong inverse relationship between the initial agricultural adoption date and the institutional performance. This relationship suggests that late adopters of agriculture developed culture conducive for establishing better institutions, while early adopters did not. In the empirical analysis, the carbon dates proxy for the degree of cultural divergence among our ancestors. The paper argues that the introduction of settled agriculture caused a cultural divergence between early adopters and late adopters of agriculture; such divergence has persisted and grown over many generations and led to differences in institutions. The paper uses differences in climate patterns at the time of the Neolithic Revolution as a source of exogenous variation in the timing of settled agriculture. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]
- Published
- 2009