Guiso, Luigi; Herrera, Helios; Morelli, Massimo - Istituto Einaudi per l'Economia e la Finanza (EIEF) - 2013
If voters of different countries adhere to different and deeply rooted cultural norms, when these countries interact their leaders may find it impossible to agree on efficient policies especially in hard times. Political leaders' actions are bound by a "conformity constraint" that requires them...