Uncertainty Shocks, Cultural Behaviors and Economic Development

The literature regarding cultural background change points out that changes in can only be slow moving. However, under high uncertainty levels, may the short or medium term as well. In this paper, effects of on behaviors are investigated. Cultural is captured through Schwartz’s values, based waves provided by European Social Survey from 2002 up to 2018, performing relative Principal Component Analyses. An Uncertainty Index constructed volatility stock market for all Eurozone countries, euro’s adoption January 2001 December 2018. Using an unbalanced panel dataset comprised 18 countries time period a fixed-effects assessment method, different fixed terms between examined economies, dummies per wave nine total data and country-specific clustered robust estimates standard errors, main conclusions empirical analysis following: (a) significantly affects societies leads its change; (b) culture start two years after shock has occurred; (c) specific values reveals significant values. effect highest dipole “conservatism autonomy” smallest “mastery vs. harmony”. (d) When high, higher levels hierarchy (authority, humbleness), self-direction (independent thought action), stimulation (excitement, novelty challenge life), affective autonomy (pursuit actively positive activities: pleasure, exciting life) mastery (ambition hard work, daring, independence, drive success) which means their life’s harmony disrupted, at least later. Thus, exhibiting systematically about develop going hinder economic development, vice versa.