If your ancestors could grow crops easily—and thus get proof that patience pays off—you’re more likely to value distant payoffs, argue two economists in a new paper.

Omer Ozak, SMU, agriculture, soil, economics

Journalist Joe Pinsker with The Atlantic covered the research of SMU economist Ömer Özak about the association between cultures that value long-term payoffs and their ancient history of successful crop yields. Pinsker’s story, “Can a Nation’s Soil Explain Its Economic Fortunes?” published Sept. 17. Özak’s co-author on the study was economist Oded Galor, Brown University.

Özak, an assistant professor in the SMU Department of Economics, is an expert in technological change and economic growth, macroeconomics and monetary economics and international economics. For more about Özak’s research and teaching philosophy, see his web site at ÖmerÖzak.com.

Özak’s research focuses on technological change and economic growth, macroeconomics and monetary economics and international economics.

In particular, Özak’s research explores the role of geography, technology and culture on contemporaneous economic development. He additionally has explored the relationship between market imperfections and technological innovation and adoption. His research also examines the dynamics of economies with heterogeneous interacting agents. Özak has published books and articles on economic growth, mathematics, game theory, monetary theory and the history of economic thought.

Read The Atlantic story.

EXCERPT:

By Joe Pinsker
The Atlantic

Jared Diamond argued, in his 1997 book Guns, Germs, and Steel, that geography is fate. One thread of his theory sought to explain why societies in Eurasia developed more quickly than in the Americas and Africa. Because Eurasia is oriented horizontally, he argued, all of its ancient inhabitants were at roughly similar latitudes, which meant that they worked with roughly similar environments and climates. Thus, a particularly valuable crop or domesticated animal could be put to use just about anywhere on the continent, and one group’s best practices could easily be adopted by other groups—not the case in vertical Africa. Hence, different rates of development.

Two economics researchers, Brown’s Oded Galor and Southern Methodist University’s Ömer Özak, recently published an ambitious paper reminiscent of Diamond’s work. Like Diamond, they make an argument that is so simple and intuitive that it at first glance appears reductive: People whose ancestors come from places with richer harvests are more likely to appreciate the benefits of long-term thinking. Essentially, the theory suggests that because people who lived in especially fertile areas had more reason to believe that patience pays off, they came to create cultures that are okay with delaying gratification.

Galor and Özak’s thinking, while data-driven, mostly yields abstract conclusions: The higher the crop yield, the more patient people will be, and the more patient people are, the more dependably their economies will grow. However, the pair’s findings are occasionally quite concrete: Modern-day countries that, roughly 500 years ago, had crop yields one standard deviation higher than average build roughly one year of extra schooling into their education systems. In other words, if wheat was really shooting up for your ancestors 500 years ago, then you’re more likely to have had 12 years of schooling instead of 11.

Read the full story.

Follow SMUResearch.com on twitter at @smuresearch.

SMU is a nationally ranked private university in Dallas founded 100 years ago. Today, SMU enrolls nearly 11,000 students who benefit from the academic opportunities and international reach of seven degree-granting schools. For more information see www.smu.edu.

SMU has an uplink facility located on campus for live TV, radio, or online interviews. To speak with an SMU expert or book an SMU guest in the studio, call SMU News & Communications at 214-768-7650.