The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence
This paper incorporates morality -- defined as lower utility from consuming goods obtained through appropriative rather than productive activities -- into a simple static general equilibrium model in which agents choose whether to be producers or a...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110630123337 http://hdl.handle.net/10986/3483 |
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okr-10986-34832021-04-23T14:02:10Z The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence Balan, David J. Knack, Stephen ACHIEVEMENT CAUSATION COMPETITIVENESS CONSTANT RETURNS TO SCALE CORRELATIONS DEVELOPMENT POLICY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC PERFORMANCE EDUCATION LEVEL ENDOGENOUS VARIABLES ENTREPRENEURSHIP EQUATIONS ETHICAL BEHAVIOR ETHICS EXPORTS FORMAL EDUCATION FUTURE RESEARCH GDP GDP PER CAPITA GENERAL EQUILIBRIUM MODEL HONESTY HUMAN CAPITAL HUMAN DEVELOPMENT HYPOTHESES INCOME INCOME LEVELS INDEPENDENT VARIABLES INFERENCE INTUITION ISLAM LET LINEAR MODELS MISSING DATA MODELING MORALITY NUMERICAL ANALYSIS ORDINAL SCALES OUTLIERS PAPERS PER CAPITA INCOME PERSONALITY POLITICAL ECONOMY PREDICTION PREDICTIONS PROBABILITY PRODUCTION FUNCTIONS PSYCHOLOGY PUBLIC SERVICES PURCHASING POWER REALITY REASONING RELIGION RELIGIONS RENT SEEKING ROM SACRIFICE SAMPLE SIZE SCHOOLING SCHOOLS SECONDARY EDUCATION STANDARD DEVIATION STANDARD DEVIATIONS STANDARD ERRORS STATISTICAL SIGNIFICANCE STRUCTURAL MODELING SUPPLY CURVE TIME SERIES TRANSITION ECONOMIES UNEMPLOYMENT VALIDITY This paper incorporates morality -- defined as lower utility from consuming goods obtained through appropriative rather than productive activities -- into a simple static general equilibrium model in which agents choose whether to be producers or appropriators. The authors analyze the relationship between the correlation between morality and human capital on the one hand, and aggregate economic performance on the other. They show that there is a main effect that tends to cause this relationship to be positive, and that there can be secondary effects that can either rein-force or oppose (or even overbalance) the main effect. They test the theory using the World Val-ues Survey as a source of proxies for morality. Using their preferred proxy, they find evidence that higher within-country correlation between morality and ability, holding constant the levels of morality and ability, increases per-capita income levels. Under the preferred specification, a one-standard-deviation increase in the correlation between morality and ability raises the log of per-capita income by about one-fourth of a standard deviation, equal to approximately $3,600 for the median income country in the sample. The results are robust to correcting for endogeneity and to changes in sample and specification. The results are mixed when the analysis uses alternative morality proxies, but the coefficient on the morality-ability correlation is still usually positive and statistically significant. 2012-03-19T18:03:16Z 2012-03-19T18:03:16Z 2011-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110630123337 http://hdl.handle.net/10986/3483 English Policy Research working paper ; no. WPS 5720 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACHIEVEMENT CAUSATION COMPETITIVENESS CONSTANT RETURNS TO SCALE CORRELATIONS DEVELOPMENT POLICY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC PERFORMANCE EDUCATION LEVEL ENDOGENOUS VARIABLES ENTREPRENEURSHIP EQUATIONS ETHICAL BEHAVIOR ETHICS EXPORTS FORMAL EDUCATION FUTURE RESEARCH GDP GDP PER CAPITA GENERAL EQUILIBRIUM MODEL HONESTY HUMAN CAPITAL HUMAN DEVELOPMENT HYPOTHESES INCOME INCOME LEVELS INDEPENDENT VARIABLES INFERENCE INTUITION ISLAM LET LINEAR MODELS MISSING DATA MODELING MORALITY NUMERICAL ANALYSIS ORDINAL SCALES OUTLIERS PAPERS PER CAPITA INCOME PERSONALITY POLITICAL ECONOMY PREDICTION PREDICTIONS PROBABILITY PRODUCTION FUNCTIONS PSYCHOLOGY PUBLIC SERVICES PURCHASING POWER REALITY REASONING RELIGION RELIGIONS RENT SEEKING ROM SACRIFICE SAMPLE SIZE SCHOOLING SCHOOLS SECONDARY EDUCATION STANDARD DEVIATION STANDARD DEVIATIONS STANDARD ERRORS STATISTICAL SIGNIFICANCE STRUCTURAL MODELING SUPPLY CURVE TIME SERIES TRANSITION ECONOMIES UNEMPLOYMENT VALIDITY |
| spellingShingle |
ACHIEVEMENT CAUSATION COMPETITIVENESS CONSTANT RETURNS TO SCALE CORRELATIONS DEVELOPMENT POLICY ECONOMETRIC MODELS ECONOMETRICS ECONOMIC PERFORMANCE EDUCATION LEVEL ENDOGENOUS VARIABLES ENTREPRENEURSHIP EQUATIONS ETHICAL BEHAVIOR ETHICS EXPORTS FORMAL EDUCATION FUTURE RESEARCH GDP GDP PER CAPITA GENERAL EQUILIBRIUM MODEL HONESTY HUMAN CAPITAL HUMAN DEVELOPMENT HYPOTHESES INCOME INCOME LEVELS INDEPENDENT VARIABLES INFERENCE INTUITION ISLAM LET LINEAR MODELS MISSING DATA MODELING MORALITY NUMERICAL ANALYSIS ORDINAL SCALES OUTLIERS PAPERS PER CAPITA INCOME PERSONALITY POLITICAL ECONOMY PREDICTION PREDICTIONS PROBABILITY PRODUCTION FUNCTIONS PSYCHOLOGY PUBLIC SERVICES PURCHASING POWER REALITY REASONING RELIGION RELIGIONS RENT SEEKING ROM SACRIFICE SAMPLE SIZE SCHOOLING SCHOOLS SECONDARY EDUCATION STANDARD DEVIATION STANDARD DEVIATIONS STANDARD ERRORS STATISTICAL SIGNIFICANCE STRUCTURAL MODELING SUPPLY CURVE TIME SERIES TRANSITION ECONOMIES UNEMPLOYMENT VALIDITY Balan, David J. Knack, Stephen The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5720 |
| description |
This paper incorporates morality --
defined as lower utility from consuming goods obtained
through appropriative rather than productive activities --
into a simple static general equilibrium model in which
agents choose whether to be producers or appropriators. The
authors analyze the relationship between the correlation
between morality and human capital on the one hand, and
aggregate economic performance on the other. They show that
there is a main effect that tends to cause this relationship
to be positive, and that there can be secondary effects that
can either rein-force or oppose (or even overbalance) the
main effect. They test the theory using the World Val-ues
Survey as a source of proxies for morality. Using their
preferred proxy, they find evidence that higher
within-country correlation between morality and ability,
holding constant the levels of morality and ability,
increases per-capita income levels. Under the preferred
specification, a one-standard-deviation increase in the
correlation between morality and ability raises the log of
per-capita income by about one-fourth of a standard
deviation, equal to approximately $3,600 for the median
income country in the sample. The results are robust to
correcting for endogeneity and to changes in sample and
specification. The results are mixed when the analysis uses
alternative morality proxies, but the coefficient on the
morality-ability correlation is still usually positive and
statistically significant. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Balan, David J. Knack, Stephen |
| author_facet |
Balan, David J. Knack, Stephen |
| author_sort |
Balan, David J. |
| title |
The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence |
| title_short |
The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence |
| title_full |
The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence |
| title_fullStr |
The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence |
| title_full_unstemmed |
The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence |
| title_sort |
correlation between human capital and morality and its effect on economic performance : theory and evidence |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110630123337 http://hdl.handle.net/10986/3483 |
| _version_ |
1764387073042677760 |