The effect of culture on fiscal redistribution: Evidence based on genetic, epidemiological and linguistic data

- We investigate the effect of individualism/collectivism on fiscal redistribution.
- We instrument this cultural dimension by a set of genetic, epidemiological and linguistic data.
- Our analysis suggests that less collectivistic societies redistribute more.

Using a set of innovative instruments qualified by the literature, we investigate the effect of individualist culture on fiscal redistribution. Our analysis suggests that societies characterized by less collectivistic culture present higher levels of fiscal redistribution, as proxied by government subsidies and transfers as well as health and education expenses.