Abstract
This paper presents evidence showing that since antiquity there have been two opposed types of institutional systems: one resembling central planning and present in ancient China, ancient Egypt, the Inca Empire and other territorial states, and another one with strong market institutions, protection of property rights present mostly in city-states not just in the Mediterranean but throughout the world. Evidence is presented that these institutional differences dating back to the antiquity, and shaped by special geographical conditions, consistent with the idea that these institutional differences can be seen to be at the root of the two cultural systems in today’s world: individualism and collectivism. These cultural differences have effects on economic performance and institutions in today’s world.
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Host: Bård Harstad