Take Action

Home | Faculty & Research Overview | Research

Research Details

Long Term Persistence, Journal of European Economic Association

Abstract

Is social capital long lasting? Does it affect long term economic performance? To answer these questions we test Putnam's conjecture that today marked differences in social capital between the North and South of Italy are due to the culture of independence fostered by the free city states experience in the North of Italy at the turn of the first millennium. We show that the medieval experience of independence has an impact on social capital within the North, even when we instrument for the probability of becoming a city state with historical factors (such as the Etruscan origin of the city and the presence of a bishop in year 1,000). More importantly, we show that the difference in social capital between towns that in the Middle Ages had the characteristics to become independent and towns that did not exists only in the North (where most of these towns did become independent) and not in the South (where the power of the Norman kingdom prevented them from doing so). Our difference in difference estimates suggest that at least 50% of the North-South gap in social capital is due to the lack of a free city state experience in the South.

Type

Article

Author(s)

Luigi Guiso, Paola Sapienza, Luigi Zingales

Date Published

2015

Citations

Guiso, Luigi, Paola Sapienza, and Luigi Zingales. 2015. Long Term Persistence. Journal of European Economic Association.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action