Cultural economics

[20] Methods include case studies and theoretical and empirical modeling of cultural transmission within and across social groups.

This is partly due to nurture aspects, or what type of environment one is raised in, as it is the internalization of one's upbringing that shapes their future wants and tastes.

In this approach, the economy and culture are each viewed as a single system where "interaction and feedback effects were acknowledged, and where in particular the dynamic were made explicit".

Throughout their upbringing, younger persons of the current generation are consuming culture faster than their parents ever did, and through new mediums.

The smartphone is a blossoming example of this where books, music, talk, artwork and more can all be accessed on a single device in a matter of seconds.

Giuliano added cultural critique to her analysis of the research, revealing that it is Southern European culture to stay at home longer and then related this to how those who live at home longer have fewer children and start families later, thus contributing to Europe's falling birthrates.

Economists argue that to ensure that the future is better than today, certain measures must be taken such as collecting taxes or "going green" to protect the environment.

He has created a set of criteria in regards to for which policy prescriptions can be compared to in order to ensure growth for future generations.

In 2007, Thorsten Hens and Mei Wang pointed out that indeed many areas of finance are influenced by cultural differences.

[36] The role of culture in financial behavior is also increasingly being demonstrated to have highly significant effects on the management and valuation of assets.

It was proven that both cultural differences between nations as well as the amount of unfamiliarity investors have with a culture not their own greatly reduces their willingness to invest in those nations, and that these factors have a negative impact with future returns, resulting in a cost premium on the degree of foreignness of an investment.

[50] In Nigeria, both real GDP and Consumer Price Index were both useful predictive factors, but foreign exchange rate was not.

[citation needed] In Zimbabwe, only money supply and oil prices were found to be useful predictors of stock market valuations.

[52] A comprehensive global study out of Romania attempted to identify if any factors of stock market valuation were culturally universal, identifying interest rates, inflation, and industrial production, but found that exchange rate, currency exchange volume, and trade were all unique to Romania.