On Social Norms: the Collection of Theoretical and Empirical Findings DOI: 10.26399/978-83-66723-31-3
On Social Norms: the Collection of Theoretical and Empirical Findings
Iana Okhrimenko
Warsaw 2021
On Social Norms: the Collection of Theoretical and Empirical Findings Iana Okhrimenko (Lazarski University, ORCID: 0000-0002-8121-0733) Reviewers: dr hab. Piotr Stanek, prof. UEK dr Tomasz Kwarciński
Executive editor: Aleksandra Szudrowicz Language editing and proofreading: LIDEX Translation & Conference Service Center Cover design: Paweł Pietrzyk
DOI: 10.26399/978-83-66723-31-3 ISBN: 978-83-66723-31-3 e-ISBN: 978-83-66723-32-0 © Copyright by Lazarski University 2021
Typesetting: PanDawer Print coordination: PanDawer
1st Edition Lazarski University Press
Contents Introduction ............................................................................................ 7 Chapter 1. Pro-social behaviour under the neoclassical research program and the process of social change ....................................................... 13 1.1. What is the neoclassical research program? ...................................... 13 1.2. Social preferences, or how rational and self-optimizing agents reveal their social sentiment ...................................................................... 16 1.3. The procedure specifying public choice and its criticism .................. 22 1.4. Procedural and ecological rationality as the alternative to the optimization paradigm .................................................................... 26 1.5. The nature of social norms .............................................................. 27 1.6. The principles of reductionism and methodological individualism in the neoclassical research program ................................................... 30 1.7. Social preferences or social norms? ................................................. 32 1.8. Conclusion ...................................................................................... 33
Chapter 2. Cultural environment, values, and well-being – a clustering analysis ............................................................................................ 35 2.1. Cultural environment, formal institutions, and well-being ................ 35 2.1.1. The nature and typology of culture. ...................................... 35 2.1.2. On the idea of country-specific culture ................................. 38 2.1.2. Culture or informal institutions? ............................................ 38 2.1.3. The links between cultural environment and the design of formal institutions ................................................................. 39 2.1.4. Institutional and cultural determinants of economic development ........................................................................ 41 2.2. Research strategy description .......................................................... 44 2.3. Data processing method ................................................................... 45 2.3.1. Data pre-processing .............................................................. 45 2.3.2. Preliminary data analysis and clusterability assessment .......... 47 2.3.3. Selecting and executing the appropriate algorithm & quality evaluation ............................................................................. 64 2.4. Results and discussion ..................................................................... 65 2.5. Conclusion ...................................................................................... 76
Bibliography ..................................................................................... 81
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Appendices ............................................................................................... 89 Appendix 1. Country codes (World Values Survey, Wave 7) ........................ 89 Appendix 2. Variables used for assessing the cultural environment – WVS indices, individual responses (World Values Survey, Wave 7) ............. 89 Appendix 3. Variables used for assessing the cultural environment – individual responses (World Values Survey, Wave 7) ......................... 91 Appendix 4. Variables used for assessing the perceived quality of the formal institutional environment – individual responses (World Values Survey, Wave 7) ............................................................................... 97 Appendix 5. Variables used for assessing well-being – individual responses (World Values Survey, Wave 7) ......................................................... 99 Appendix 6. Eigenvalues visualization; the proportion of variance explained by each principal component ........................................................... 100 Appendix 7. Summary on the distance measures used in the study ............. 104 Appendix 8. Cluster validity ....................................................................... 105 Appendix 9. Herfindahl-Hirschman indices computed based on the clustering analysis output (WVS indices – Dataset 2) ......................... 112 Appendix 10. Herfindahl-Hirschman indices computed based on the clustering analysis output (variables describing the character of the cultural environment – Dataset 3) ..................................................... 113
Introduction Public policy reflects how public authorities shape social interaction patterns, design legislation, protect freedoms, and reinforce civil rights. In some countries, the government, in most respects, does a good job; in others, government underperforms. Ukraine (the country of my origin) belongs to the latter group. Such an environment served as excellent motivation to think about whether public policy can be designed in a better way. The philosophy of Enlightenment suggested that society could achieve happiness and prosperity under wise governance. These ideas sounded extremely appealing to me. Hobbes (1651) justified the importance of central governing bodies as a guarantee of fulfilling legal obligations and preserving social order (or “the peace of mankind” – p. 88). In his Principles of Philosophy, Descartes (1644) proclaims the superiority of Reason, stating that all the objects in the universe obey some uniform rules and principles and that one can successfully learn these principles using the appropriate methods of scientific inquiry. Rousseau (1762) expresses the seemingly trivial idea that the underlying criterion of good governance is citizens’ well-being (“What is the purpose of any political association? The preservation and prosperity of its members” – p. 43). His opinion that the population growth rate should serve as a good governance indicator does not seem to be well-justified nowadays; yet, the fundamental principle of goodness-as-prosperity was clear, transparent, and seemed to be a good starting point for thinking about the appropriate public policy design. Later, I became a student of economics and got acquainted with the contribution of political economics to the principles of good governance. It is easy to see the links between the famous idea by Robbins (1935) that economics is a science of rational use of scarce resources (which is the first thing to be discussed in any economics textbook) and the Cartesian ideas. Both suggest that proper organization (or resource allocation) is the key to well-being and wealth. Talking about wealth, Malthus (1836) expresses the revolutionary idea (at least, for the undergraduate student), denying the narrow definition of wealth discussed in the microeconomics and macroeconomics textbooks. Stating that wealth can be defined as anything people enjoy, he argues that wealth should involve “everything whether material or intellectual, whether tangible or otherwise, which contributes to the advantage or pleasure of mankind, and of course includes the benefits and gratifications derived from religion, from morals, from political and civil liberty, from oratory, from the instructive and agreeable conversation, from music, dancing, acting, and all personal qualities
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Introduction
and service” (p. 42). Malthus’s (1836) understanding of wealth significantly enriches the scope of economists’ tasks. Although it might seem an exaggeration, I perceived economics as a tool for achieving greater happiness1 for everyone in a world full of various constraints. Mill’s (1863) utilitarian ethics is ideally in line with this intuition, proclaiming social utility maximization as the primary objective of any governor. Initially, I planned to keep on the Cartesian/constructivist discourse when writing my Ph.D. thesis, attempting to explore the optimal social policy principles based on the aggregate utility function’s shape, following Vickrey’s (1960) notion of the cardinal social preferences. However, after an extensive review of numerous works on social preferences, I started to doubt the validity of the Max-U paradigm2. Although the theory itself is beautiful and logical, it did not capture the full complexity of social interaction. The methodological individualism, featured by the neoclassical economic framework3 (see Colander, 2000), fails to capture the effect of interaction between individuals and the social environment. In this sense, I noticed a gap between economics and other social sciences. Skinner’s (1938; 1957; 1969) behaviourism suggests that observable behaviour is the only valid type of evidence for the researcher; the decision-making mechanism cannot be defined or verified in the experimental conditions, thus making the response analysis the only tool of scientific inquiry. Skinner’s framework does not dominate the cognitive sciences anymore, being recognized as an important milestone, but not as a fully valid scientific theory. However, orthodox economists continue mapping social preferences based on the revealed choices solely, in line with the commonly respected experimental economics principles (Bowles and Polania-Reyes, 2012). Not to be misunderstood, I see no reason for criticizing experimental methods in economics – the problem I would like to discuss lies in neglecting the decision-making mechanisms. In line with the fundamental principles of neoclassical economics (see Colander, 2000), the mainstream economic research program keeps assuming that any decision is an outcome of a conscious optimization process4. Subsequently, although there are plenty of studies dealing with various aspects of pro-social behaviour (Andreoni and Interestingly, Malthusian ideas seem to be re-born in the modern form – so-called economics of happiness (see Graham and Pettinato, 2002; Kahneman and Sugden, 2005). 2 According to Max-U paradigm, human behaviour is the result of deliberate self-optimization (i.e., utility maximization). 3 Here and further, terms neoclassical economics and orthodox economics are used interchangeably (see detailed discussion in the first chapter). 4 Heuristic decision-making (the alternative to the Max-U paradigm) is also a subject of the economic research program. Nevertheless, under the so-called “heuristics and biases”, or 1
Introduction
9
Miller, 2002; Andreoni and Varian, 1999; Becker, 1974; 1976; Bénabou and Ok, 2001; Bowles and Gintis, 2000; Brennan et al., 2008; Dawes et al., 2007; Fehr and Schmidt, 1999; Fisman et al., 2007; Heffetz and Frank, 2011; Kroll and Davidovitz, 2003; List and Cherry, 2000; Morawetz et al., 1977), the only piece of novelty they can offer is a slightly different shape of individual preferences. In the neoclassical model of the world, atomistic agents interact with each other in a manner specified by their exogenously given social preferences. There is no place for social norms, arrangements, social evolution, and transformation of values. It would be argued that social exchange dynamics and collective choice cannot be addressed while ignoring the aforementioned phenomena. However, modern economic literature offers an alternative approach to individual and social choice. V. Smith (2010) argues that pro-social behaviour is not necessarily the outcome of deliberate self-optimization. Instead, we usually act for the good of others under the pressure of social norms and social arrangements. Being radically different from the vast majority of economics studies devoted to altruistic behaviour, V. Smith’s (2010) ideas seem to be much more consistent with reality. Such a model incorporates the effect of the social environment organically, denying the notion of atomistic and independent agents. Simon (1968) suggests that, in contrast to the common misconception, the optimization approach is not the only form of rational behaviour. Moreover, as Hayek (1945) reinforces, a means-end approach to public policy when public authorities attempt to achieve some ideal social state might be extremely damaging. It is hard to disagree that the neoclassical economic framework fails to serve as an accurate and appropriate representation of reality. Nevertheless, it is easy to see why it still dominates all the fields of economics. The orthodox approach commonly poses economics as a science analysing the objective laws of human action and social interaction analogously to the natural sciences (Lawson, 2003). It would be argued, nevertheless, that such a logic is not fully valid. As Hayek (1952) underlines, social and natural sciences feature radically different methods of scientific inquiry. There is no objective and uniform knowledge in the world of social artifacts (using Simon’s terminology) except for the agents’ shared knowledge. Moreover, the knowledge mentioned above is rarely codified or expressed explicitly5, representing the form of collective intelligence (V. Smith, “consistency” approach, it is viewed rather as a systemic deviation from the rational self-optimization path (Berg, 2014). 5 “… the concrete knowledge which guides the action of any group of people never exists as a consistent or coherent body. It only exists in the dispersed, incomplete, and inconsistent form of
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Introduction
2010). Therefore, “what is relevant in the study of society is not whether […] laws of nature are true in any objective sense, but solely whether they are believed and acted upon by the people” (Hayek, 1952, p. 93). It is impossible to define the objective rules and patterns of social and economic exchange. Markets are the products of social design, and their behaviour is constrained by the norms shared by all the agents constituting society. Based on the example provided by Hayek (1952), prices do not change as a result of an external shock. Instead, prices change due to the transformation of shared beliefs and assumptions, and the same applies to all of the social artifacts due to their praxeological6 nature. The conclusion is straightforward: better understanding of economics requires better knowledge of human nature. Realizing the role, design, and mechanism of social norms can provide valuable inquiry into the world of social facts. This way of thinking is strictly in line with the scientific methods used by Adam Smith in his famous book An Inquiry into the Nature and Causes of the Wealth of Nations (1776). Axiomatic thinking, featured by the modern orthodox economics framework (Stigum, 2003), never appears in The Wealth of Nations. In contrast, A. Smith frequently relies on careful observations and the analysis of human nature, never trying to separate economic rationality from the sense of sociability or moral sentiment. Despite being the icon of the modern neoliberal economic framework, he did not write a word about the radical self-optimization principle (V. Smith and Wilson, 2019), emphasizing the role of social ties and norms instead. V. Smith, emphasizing the role of social norms and avoiding excessively formalized models of human behaviour, furtherly develops A. Smith’s ideas in the 21st century economics. However, V. Smith’s approach is relatively uncommon in mainstream economics, despite being established on the solid theoretical ground. In 2002, Kahneman and V. Smith shared the Nobel Prize in economics as a recognition of their effort in experimental economics. Leaving no doubts that neoclassical farsighted self-optimization assumption is not consistent with human behaviour, V. Smith and Kahneman have a radically different opinion regarding the implications of such “irrationality”. As one of the founders of the so-called “heuristics and biases” (Berg, 2014) approach, Kahneman treats substantive in which it appears in many individual minds, and the dispersion and imperfection of all knowledge are two of the basic facts from which the social sciences have to start” (Hayek, 1945, p. 93). 6 Hayek (1945) uses term “praxeological” instead of “teleological” due to the controversies associated with the latter. “Teleological”, or “consequentialist”, artifact might be interpreted as constructs developed with the clear and explicit purpose. In contrast, according to Hayek’s (1945) beliefs, social artifacts are not the products of purposeful design exclusively; instead, they develop spontaneously as the product of social interaction.
Introduction
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rationality as the only valid decision-making principle. In contrast, for V. Smith, rationality is rarely revealed at the individual decision-making level; even though the particular behavioural strategy might deviate from the deliberate self-optimization path, it can still be rational from the social group’s perspective. Consequently, social norms serve as useful heuristics, replacing the social preferences construct being the only tool for assessing social sentiment under the reductionist neoclassical research program setting. The present manuscript discusses selected topics related to the nature and role of social norms. The book consists of two chapters containing independent and complete studies, which are, nevertheless, connected by the core topic and the overall research objective. The first chapter examines the conflict between the neoclassical research program and the nature of social norms, addressing the research question of whether an atomistic approach towards analysing social sentiment featured by the neoclassical research program can adequately conceptualize social norms. Under the orthodox economic framework, optimization represents the only valid approach towards decision-making. Therefore, any kind of pro-social and altruistic behaviour is assessed as the result of deliberate self-optimization constrained by the shape of stable and exogenously defined social preferences. As discussed in the first chapter, social preferences (or other-regarding preferences) serve as the construct allowing for the phenomenon of pro-social behaviour to be explained and analysed without violating the neoclassical research program’s assumptions, since social norms and values are not consistent with the methodological individualism featured by the orthodox economic framework. In contrast, the competing school of rationality (ecological rationality) recognizes social norms as the decision-making heuristics developed by means of collective intelligence (from this perspective, social norms are exogenous for individuals, but endogenous from the societal perspective, being developed, adjusted, and the amended in the process of evolutionary selection). Without trying to assess which principle of rationality serves as the more accurate descriptive model of human behaviour and human interaction, the discussion is concentrated around the inability of the neoclassical research program to conceptualize the process of social change, which is accompanied by the adoption of a new set of values and principles governing social life and shaping individuals’ beliefs, expectations, and normative attributions. The second chapter investigates the process of social change through the transformation of social norms. The research question addresses the existence of straightforward links between cultural norms, formal institutional environment quality, and economic well-being. In the context of the modern heterodox framework, cultural mindset is commonly viewed as the equivalent of informal
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Introduction
institutions (the emphasis is put on the dominating norms, values, expectations, and normative attributions). Consequently, informal institutions are assessed as the sample-adjusted average values of the variables standing for various dimensions of the cultural environment (depending on the theoretical framework adopted). The study attempts to assess the links between the cultural environment, formal institutional environment, and policy outcome (i.e., the subjectively assessed level of economic well-being) using the cluster analysis. Reflecting the critical assessment of the country-specific culture notion, the analysis is performed based on micro-data.
Chapter 1.
Pro-social behaviour under the neoclassical research program and the process of social change
Although it is hard to doubt the existence and the role of social norms in social reality, their nature is hardly compatible with the underlying principles of the orthodox economic framework. The present essay highlights incompatibility between the endogenous nature of social norms and the reductionist approach featured by the neoclassical economic framework. The chapter begins with identifying the prominent features of the neoclassical research program, which serves as a standard set of principles adopted in orthodox economic analysis. The second section presents the overview of the most famous and influential works analysing pro-social behaviour under the orthodox framework. The third section discusses the principles of ecological rationality and social heuristics as the alternative to the model of pro-social behaviour based on the social preferences construct. The fourth section discusses the notion of endogenous preferences together with the process of their development and calibration. The fifth section examines the compatibility of the reductionist analysis and endogenous social norms. Finally, the last section concludes and explores the implications of methodological individualism in assessing social dynamics.
1.1. What is the neoclassical research program? As Hayek (1945) emphasizes, the modern mainstream economic approach is the direct descendant of the French Enlightenment philosophical ideas. The superiority of Reason is one of the critical features of Cartesian philosophy. The fundamental belief in the supremacy of conscious analysis accompanied by the assumption about the possibility of such analysis has, to a great extent, shaped the modern orthodox (or the neoclassical) school of economic thought. It should be admitted that nowadays, both the terms mentioned above are used in a schizophrenic and inconsistent way, as Colander (2000, p. 132) mentions. Therefore, discussing the characteristics of the neoclassical (or orthodox) framework is believed to serve as a crucial part of the present discussion. Colander (2000) names six critical features of neoclassical economics, namely, focusing on the efficient allocation of resources in a given moment; putting utilitarian and consequential approach in the central place; focusing on the marginal trade-offs; farsighted rationality
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assumption; an analytical approach based on the methodological individualism, or reductionism; and, finally, the prominent role attributed to the general equilibrium assumption in the economy. Here and further, the orthodox (or the neoclassical) economic framework will refer to the scope of beliefs and methods featuring the attributes listed above. Some of these attributes are reflected in the present research, constituting the basis for investigating the appropriateness of the orthodox theoretical tool for the social choice analysis. These assumptions, therefore, deserve a more extensive analysis. Firstly, optimal resource allocation is a central idea in economics and the first definition presented in any economics textbook. Efficient resource allocation requires an optimization approach, and this is reflected in the underlying rationality assumption, as discussed above7. Leaving aside the general validity of this premise, putting “a relationship between ends and scarce means which have alternative uses” (Robbins, 1935, p. 16) in the centre of social choice analysis narrows the perspective significantly. Society is a complex system. It is not static, and it is not the product of the conscious optimization design. Proper functioning of such a complex system can be ensured thanks to the proper process of evolutionary adjustment. Arguably, the mean-end policy (even if it can achieve the most efficient allocation of social resources) might not align with the aforementioned objective. Secondly, Colander’s (2000) notion of farsighted rationality is identical to the constructivist (V. Smith, 2010) or substantive (Simon, 1968) rationality. All the concepts mentioned above refer to the consistency of human action with the logical principles of optimization. In turn, optimization serves as the conscious and deliberate process of seeking the best alternative out of a set of possible alternatives. To be more specific, Simon (1968) described optimization strategy as the process of adjusting the variables of “inner environment” (i.e., the variables under a decision-maker’s control) to the constraints imposed by the “outer environment” consisting of the set of parameters “known with certainty or only in terms of a probability distribution” (Simon, 1968, p. 116). Speaking informally, the agents, rational in the substantive or constructivist sense, use their perfect computational abilities to define the best bundle out of the set of possible alternatives in the world, free of radical uncertainty. This view on human decision-making is too ambitious (and too In this context, the notion of efficiency corresponds to the definition provided by Robins (1935), being understood as the pattern of resource allocation maximizing the individual or the aggregate utility. From this perspective, efficiency indeed requires conscious optimization, when agents are perfectly aware of their preferences and external constraints, act in the absence of radical uncertainty, and have sufficient cognitive capacity to detect the values of variables under their control corresponding to the maximum values of agents’ utility.
7
Pro-social behaviour under the neoclassical research program and the process of social change
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optimistic, considering the absence of the radical uncertainty assumption). However, the assumption of perfect rationality serves as the perfect basis for axiomatic analysis8, thus remaining part of the neoclassical research program (Lawson, 2003). It should be noted that the present study does not attempt to challenge the notion of farsighted rationality as the positive principle describing human behaviour. In contrast, it critically assesses the implications of the substantively rational optimization for the public policy architecture. Thirdly, methodological individualism mentioned by Colander (2000) implies that any complex system is viewed as a simple sum of its components. Subsequently, the system cannot have any characteristics not featured by its elements. Applied to the present discussion, methodological individualism (or reductionism) implies that society (as a complex system) consists of atomistic agents; logically, any interaction effects are assumed to be perfectly predictable or absent, depending on the adopted notion of reductionism. In both cases, the dynamics of such a system are perfectly predictable. The neoclassical school attempts to address social sentiment and pro-social behaviour using individual agents’ social preferences. Naturally, there is no place for social norms, values, and endogenous social norms, as discussed further in this chapter. Finally, utilitarianism serves as the ultimate basis for any normative judgements under the neoclassical framework. Goodness is defined by the criterion of aggregate utility, while other considerations are neglected. Although one can think about some alternatives to the utilitarian social choice principle (for instance, Nash9 and Rawlsian10 SWFs11), they all address distributive justice12. Stigum (2003) describes axiomatic analysis as the type of predictive analysis based on pre-defined axioms. Max-U (utility maximization) analytical approach is a perfect example of the axiomatic analysis. 9 Rawls (1971) argues that a fair social outcome occurs when all the agents decide on the social distribution pattern under the “veil of ignorance”, e.g., when their position in the social hierarchy after the choice is made is unknown. Consequently, Rawls (1971) asserts that all the agents would choose the most egalitarian pattern of social resources distribution. Following this assertion, Rawl, xn ) min{f ( x1 ),… , f ( xn )} – Stark et al., 2014, p. 440) is maximized, when sian SWF ( SWFR ( x1,…= utility of the most deprived agent is maximized. 10 Nash (1950) asserts that when two agents have equivalent bargaining power, the only mutually acceptable outcome is associated with the equal utility for both agents. Kaneko and Nakamura n (1979) describe Nash SWF ( SWFNash ( x1,… , xn ) = ∏ i=1 f ( xi ) – p. 427). Being the product of individual agents’ utilities, it is maximized, when the social outcome corresponds to the equal utility for all the agents. 11 Here and further, SWF stands for “social welfare function”. 12 The normative attribution of distributive justice is based on the consequences of the act, while the notion of procedural justice concentrates on the fair mechanism of distribution. It is easy to 8
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1.2. Social preferences, or how rational and self-optimizing agents reveal their social sentiment Social norms, arrangements, and institutions play a vital role in a society’s self-regulating mechanism, thus being consistently addressed in this work. However, as discussed in the further parts of this chapter, there is no place for social norms under the reductionist neoclassical research program. Pro-social behaviour is analysed as the outcome of a conscious self-optimization process. In other words, any kind of pro-social behaviour (voluntary giving, or altruism, is discussed most frequently) is assumed to arise from the features of individual preferences (inequality aversion, fairness considerations, “warm glow of giving”, etc.). This section provides a brief overview of the most influential studies dealing with the phenomenon of voluntary giving and designed under the neoclassical research program in order to illustrate the aforementioned argument. Becker (1974) formulates the principle which has been serving as a theoretical ground for analysing altruistic behaviour under the orthodox framework up to modern times. The aforementioned principle implies that, for any individual, the utility can be described as the function of an individual’s endowment/consumption as well as the level of utility of other individuals13. Formally speaking, Becker (1976, p. 819) describes the utility of the “representative agent” in the following way: Uh = Uh (X h , X i ) where Uh stands for the level of utility of the agent h; Xh stands for the consumption of the agent h; Xi stands for the consumption of the agent i. Becker (1981, p. 1) amends the hypothetical utility function incrementally, keeping that = Uh U(Z 1h ,… , Z mh , ψ(Uw )) where Uh stands for the level of utility of the agent h; U stands for the utility function of the agent h; see the difference between Nash (equality in terms of utility), Rawlsian (satisfying the needs of the most deprived agents), and utilitarian (maximizing aggregate social utility) mechanism of social distribution. However, all the aforementioned mechanisms concentrate on the outcome, i.e., final distribution of the social good among the agents. Consequently, they correspond to the idea of distributive justice (for a more detailed discussion, see Okhrimenko, 2021). 13 Becker (1981) discussed family members. Perhaps, the author meant the relatively small social group with strong emotional ties between its members.
Pro-social behaviour under the neoclassical research program and the process of social change
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where Z ih stands for the ith commodity consumed by the agent h; Uw stands for the level of utility of the agent w; ψ denotes the positive function of Uw. Following the assumptions listed above, one can detect that δUh /δUw > 0. The fact that one’s utility is positively affected by the utility of others reflects the existence of altruistic motives or effective altruism14 (Becker, 1981). Based on this, the effective altruist’s utility is maximized when his marginal utility of consumption is equal to the marginal utility of consumption of the “agent of interδU/δZ w = 1 which is referred to as an equilibrium condition (Becker, est”15, so δU/δZ h 1981, p. 2). According to Fehr and Fischbacher (2002), “a person exhibits social preferences if the person not only cares about the material resources allocated to her but also cares about the material resources allocated to relevant reference agents” (p. C2). Therefore, although Becker (1981) does not mention social preferences, the preferences he describes perfectly suit this term. A word of caution needs to be said regarding terminology and possible confusion. Fisman et al. (2007) distinguish between preferences for giving (self versus others) and social preferences (others versus others). Correspondingly, preferences for giving and social preferences constitute the broader concept of distributional preferences. Therefore, here and further, when own theoretical findings are discussed, social preferences denote the type of preferences with the positive causal link between the well-being of others and the utility of the decision-maker. Stark (1995) examines “altruistically-motivated consumption transfers”, following Becker’s (1974) approach. Analysing the propensity to give within a family, Stark (1995) assumes that initially, the entire endowment of corn (C) is under Father’s control. Father’s and Son’s “direct pleasure” (“felicity”) depends on the consumption of corn. Formally, VF (CF ) > 0; VS (CS ) > 0; C > 0; VF′(CF ) > 0; VS′ (CS ) > 0 (p. 16). At the same time, each family member’s utility positively depends on the other family member’s happiness. Correspondingly, Stark (1995) describes Father’s and Son’s utility as the linear combination of their and the other family member’s felicity (p. 16):
Becker’s (1974) effective altruism should not be mistaken for Singer’s (1972; 2009) effective altruism. Becker uses the aforementioned notion to denote “altruism in action”. Roughly speaking, Singer’s (1972; 2009) principle of effective altruism stands for the moral obligation to the pass own endowment to another party as long as another party derives a greater marginal utility from the endowment in comparison with the initial holder. 15 In the absence of better terminology, “agent of interest” stands for the individual the decision-maker feels some sort of emotional attachment to (for instance, a family member). 14
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UF (CF , CS ) = (1 − β F )VF (CF ) + β F US (CF , CS ) US (CF , CS ) = (1 − β S )VS (CS ) + β S UF (CF , CS ) where UF stands for Father’s utility; US stands for Son’s utility; βF stands for Father’s weight placed on Son’s utility relative to his felicity; βS stands for Son’s weight placed on Father’s utility relative to his felicity; VF stands for Father’s felicity associated with the consumption of corn; VS stands for Son’s felicity associated with the consumption of corn. In the literature devoted to analysing pro-social behaviour under the orthodox framework, normative evaluation of such behaviour is relatively uncommon. Interestingly, Stark (1995) points out that although reciprocal altruism in non-market transactions decreases the probability of conflicts, it does not necessarily make a community better-off; perhaps, this can explain why some societies transit towards market-oriented transactions faster than others (p. 25). Fehr and Schmidt (1999) introduce fairness considerations to the model of social preferences, defining the former as “self-centred inequity aversion”. Self-centred inequity aversion implies that agents consider the fairness of their pay-off, remaining unaffected by the fairness of distribution among other agents. The aversion towards inequity implies that individuals are willing to sacrifice some portion of their pay-off to achieve a fairer outcome. In line with this premise, Fehr and Schmidt (1999) model preferences under which the income distance between an agent and other group members causes a negative effect on the utility level. Formally, Fehr and Schmidt (1999, p. 822) assert that if there are x x1,… , xn denotes the vector of monetary players indexed by i ∈ [1,… , n], and = pay-offs, then the utility function of the player is given by: Ui ( x ) = xi − α i
1 1 max[ x j − xi ,0] − β i ∑ ∑ max[ xi − x j ,0] n − 1 j≠i n − 1 j≠i
1 ∑ max[ x j − xi ,0] stands for the utility loss associated with n − 1 j≠i “disadvantageous inequality” (i.e., when pay-off of the reference agent is smaller than the pay-off of other players); describes the degree of sensitivity to disadvan1 tageous inequality, correspondingly. The term β i ∑ max[ xi − x j ,0] stands n − 1 j≠i for the utility loss associated with “advantageous inequality”, and bi denotes sensitivity to the advantageous inequality, respectively. As Fehr and Schmidt (1999) The term α i
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report, their model is more consistent with experimental evidence (i.e., ultimatum16, gift exchange17, and public goods18 games) than self-optimization models, when own monetary pay-off serves as the single determinant of utility level. Yes, one can notice that introducing fairness considerations serves as a minor adjustment to the orthodox decision-making theory. Individuals do care about fairness, and economics should consider the importance of fairness/justice attribution. However, it does not necessarily imply the validity of the proposed model. Bolton and Ockenfels (2000) introduce the ERC (equity, reciprocity, competition) model, replacing the expected utility function with the motivation function. The authors assume the players laboratory games (denoted as), with players randomly chosen from the population and matched with no disclosure to each other19; moreover, it is assumed that each player plays a new round with a different partner. All the players attempt to maximize their motivation function (p. 171): vi = vi ( yi ,σ i ) y i /c if c > 0 where = σ i σ= stands for the relative share of pay-off i ( y i , c, n) 1/n if c = 0 assigned to the player i; In ultimatum games, the first player has to decide on how the endowment is going to be split between the first and the second player. The second player preserves the right to accept or decline the offer. In the former case, the endowment is split between the first and the second player in the way suggested by the first player; in the latter case, each player receives nothing. The game setting frequently includes different trade-off ratios (i.e., if the first player transfers n units, the second player receives n × s units, where s can take the value both ≤ 1 and ≥ 1). See Fischbacher et al. (2009); Güth et al. (1998); Krishna and Serrano (1996). Note: in dictator games, the first player decides how to split the endowment, and other players have no other choice but accepting the offer (see Andreoni and Miller, 2002). 17 In gift exchange games, the first player has to decide on the share of endowment to be transferred to the second player, while in the second round, the second player decides on how much to transfer to the first player. The game setting frequently includes different trade-off ratios (i.e., if the first player transfers n units, the second player receives n × s units, where s can take the value both ≤ 1 and ≥ 1). (See Berg et al., 1995, and Fehr et al., 1994). 18 In public goods games, the players have to decide how much to contribute to the common pool (the “public good”) shared between the players. Usually, the value of the pool is amended: n if stands for the total value of funds contributed by the players, the value of funds to be shared among the participants is n × s, where s > 1. See Fehr et al. (2000) and Isaac et al. (1984). 19 As Bolton and Ockenfels (2000) mention, “face-to-face play is a known complicating factor” (p. 171), meaning that non-anonymous interaction is extremely likely to be “biased” by other effects. This approach is perfectly in line with SSSM (Standard Social Science Model) methodological framework attempting to analyse various kind of human motivation in isolation from social environment. One can question, however, whether experimental evidence obtained in such manner can serve as basis for modelling and analysing social interaction (see Barnett, 2019). 16
20
Chapter 1
where and c = ∑ j =1 y i stands for the total pay-out. The following assumptions are imposed: i) Assumption 1: “The function vi is continuous and twice differentiable on the domain of ( y i , σ i ) ” (p. 171) ii) Assumption 2 (narrow self-interest): v i1( y i , σ i ) ≥ 0; v i11( y i , σ i ) ≤ 0 (the positive value of the first derivative of value function with respect to own payment − v i1( y i , σ i ) is positive indicating the positive relationship between the motivation function value and own pay-off; the negative value of the second derivative of the respective function with respect to the respective variable − v i11( y i , σ i ) can be interpreted analogously to the law of diminishing marginal utility). Moreover, for the fixed value of s, each player chooses the option associated with a higher monetary pay-off yi (p. 171). iii) Assumption 3 (comparative effect): v i 2 ( y i , σ i ) = 0, for σ i ( y i , c, n) = 1/n, v i 22 ( y i , σ i ) < 0 (p. 172). The comparative effect assumption implies that assuming the pay-off value, the motivation function is concave with respect to the player’s share, being maximized, when player’s pay-off is equal to the average pay-off. iv) Assumption 4 (heterogeneity): as Bolton and Ockenfels (2000) discuss, each player faces a trade-off between narrow self-interest and comparative effect. Admitting that players are heterogeneous with respect to their preferences, the authors si (c )), where ri (c ) arg max v i ( y i , σ i ), c > 0, introduce two thresholds ( ri (c) and= σi = v i (csi , si ) v i (0; 1/n), c > 0. Then, for all and si (c ) is defined implicitly by c > 0, f r (r | c ) > 0, r ∈ [1/n;1]; f s ( s| c ) > 0, r ∈ (0;1/n], where f r and f s are density functions (p. 172). It is easy to notice that the ERC model utilizes logic similar to the model proposed by Fehr and Schmidt (1999). There are some differences, nevertheless. First, Fehr and Schmidt (1999) assume that individual utility depends on the wealth distribution in the entire population, while Bolton and Ockenfels (2000) consider a counter-player’s pay-off solely. Besides, the motivation function is more general, incorporation various types of social preferences. From this perspective, Fehr’s and Schmidt’s (1999) model can be treated as the special case of the model suggested by Bolton and Ockenfels (2000). Andreoni and Miller (2002) propose an experimental methodology to reveal i) whether the preferences of giving are well-behaved; ii) whether individuals demonstrate any consistent patterns in their altruistic behaviour. The authors rely on the assumption that an agent’s utility might be described as the function of “payment to self” and “payment to others” revealed during the dictator game (p. 738): n
Us = us (π s , π o )
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where U s stands for an agent’s utility; where u s stands for an operator transforming payment to self and payment to others into the individual utility (in simple words, this operator captures utility function’s shape); where ps stands for the payment to self (number of tokens devoted to self); po stands for the payment to others (number of tokens devoted to the other player)20. During the dictator game, the participants are to allocate their initial endowment (i.e., number of tokens) between themselves and other players under the specified “price ratio” (calculated based on the value of tokens passed to others and held), when “budget constraints” and “prices” varied across the rounds. Naturally, to be subject to the formal analysis, agents’ preferences regarding ps and po must be well-behaved (i.e., rational), constituting a convex set and obeying the General Axiom of Revealed Preferences (GARP21). Andreoni and Miller (2002) report that the vast majority of agents have GARP-consistent (hence, rational) preferences, and out of them, almost a half of the participants are characterized by the “standard” (i.e., Leontief22, selfish23, or utilitarian24) shapes of the utility function. The non-standard preferences are captured by the Constant Elasticity of Substitution (CES) function25. The authors, therefore, conclude that Andreoni and Miller (2002) emphasize that variables denoting payment to self and payment to others represent marginal consumption (i.e., change in consumption), underlying that they do not attempt to analyse the preferences regarding total consumption. At the same time, they pose a premise that if preferences regarding the overall consumption are “well-behaved” (i.e., represented by the convex utility function), preferences regarding the incremental consumption should be well-behaved as well (please note there is no reverse causal link). 21 “If A is indirectly revealed preferred to B, then B is not strictly directly revealed preferred to A, that is, A is not strictly within the budget set when B is chosen” (Andreoni and Miller, 2002, p. 739). 22 Leontief preferences imply that agents allocate equal number of tokens to themselves and others, treating “own good” and “good of others” as complements, so U(π s , π o ) = min{π s ;π o } (Andreoni and Miller, 2002, p. 745). 23 Perfectly selfish individuals never give to others, regardless of the pay-offs ratio; therefore, their preferences are depicted as U(π s , π o ) = π s (Andreoni and Miller, 2002, p. 744). 24 The principle of utilitarianism might be described as “Greatest Happiness Principle” (Mill 1863, p. 10) or “rightness consist[ing] in maximal goodness” (Brink 1986, p. 419). I.e., utilitarian individuals maximize aggregate social utility regardless of the effect on their individual utility. Subsequently, Andreoni and Miller (2002) depict utilitarian preferences as such preferences, under which payment to self and payment to others are perfect substitutes, and de-factor choice between them is determined solely by the “price” (i.e., pay-off ratio): U(π s , π o=) π s + π o (p. 745). 25 (απ sρ + (1 − α )π oρ )1/ρ, where parameter serves as the indicator for selfishness, and captures U= s the convexity of preferences defining the elasticity of substitution σ = 1 (Andreoni and Miller, ρ −1 2002, p. 746). 20
22
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“possible to capture altruistic choices with quasi-concave utility functions for individuals – altruism is rational” (Andreoni and Miller 2002, p. 750). Andreoni and Miller (2002) understand rationality as consistency with the neoclassical principles of rational choice. At the same time, there is no insight into the nature and mechanism of giving. From this perspective, Giving according to GARP is not radically different from the “first generation” of neoclassicism-spirited studies described earlier, since the process of social preferences formation is completely neglected (which is typical of the neoclassical framework – Berg and Gigerenzer, 2010). In other words, pro-social/altruistic behaviour is assumed to be implied by the “built-in” features of the self-optimizing agents, perfectly suiting the orthodox framework. Fisman et al. (2007) propose the modified version of the Giving according to GARP experiment. The authors distinguish between preferences for giving and social preferences. The former is described as the pattern of allocating resources between self and others (ps and po, respectively) while the former denotes the pattern of allocating resources between others (pA and pB, when π o =[π A , πB ]). The independence of the preferences for giving and social preferences (so, if π o π′o for some ps, then π o π′o for all ps) is the crucial assumption (p. 1860). Fisman et al. (2007) report that well-behaved preferences characterize the majority of participants; moreover, the participants tend to exhibit so-called social welfare preferences when the utility is positively dependent on both ps and po26.
1.3. The procedure specifying public choice and its criticism Bergson (1938) defines social welfare as the function of “the amounts of each of the factors of production, other than labour, employed in different production units, the amounts of various commodities consumed, the amounts of different kinds of work done, and the production unit for which this work is performed by each individual in the community during that period of time” (p. 311). Criticizing the utility calculus approach based on value judgements, Bergson (1938) argues that four conditions are sufficient for social welfare maximization, namely: Social welfare preferences can be described using Becker’s (1981) “effectively altruistic” preferences. The remaining broad types of preferences reported by Fisman et al. (2007) include i) competitive preferences (when utility increases in the difference between payment to self and payment to others); ii) narrow selfish preferences (when utility depends solely on the payment to self); iii) difference aversion (when utility increases in payment to self, but decreases in the difference between payment to self and payment to others); and iv) lexself preferences (lexicographic preferences, consistent regarding payment to self solely).
26
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i) the marginal economic welfare per the “dollar worth” of the commodity should be equal for all the commodities and all the agents constituting the society; ii) the marginal economic diswelfare per “dollar’s worth” of labour should be equalized for all the types of labour and all the agents constituting the society; iii) wages should be equalized to the marginal value productivity for all the types of labour; iv) the marginal value productivity should be equalized to the cost for all the commodities (p. 315). Speaking informally, Bergson (1938) refuses to apply the notion of utility maximization due to the unavoidable ethical and methodological ambiguity associated with interpersonal utility comparison27. Therefore, the underpinning idea behind Bergson’s (1938) analysis of social welfare is that achieving allocative efficiency serves as a sufficient condition for social welfare maximization. In Arrow’s (1951) model, the notion of individual values takes over Bergson’s (1938) individual tastes. Such a change makes Arrow’s (1951) approach more pervasive since it can be applied to any community without “any prior knowledge of the tastes of individuals” (p. 24). In line with the amendment mentioned above, Arrow (1951) proposes the following definition of the SWF: By a social welfare function will be meant a process or rule which, for each set of individual orderings R1,… , Rn for alternative social states (one ordering for each individual), states a corresponding social ordering of alternative social states, R (Arrow,
1951, p. 23). Arrow (1951) imposes five conditions for the SWF, namely: i) Condition 1 (admissible set of individual orderings): “Among all the alternatives there is a set S of three alternatives such that, for any set of individual orderings T1,… , Tn of the alternatives in S, there is an admissible set of individual orderings R1,… , Rn of all the alternatives such that, for each individual i, x Ri y if and only if x Ti y for x and y in S” (p. 24). ii) Condition 2 (positive association of social and individual values): “Let R1,.., Rn and R1′ ,.., Rn′ be two sets of individual ordering relations, R and
R′ the corresponding social orderings, and P and P′ the corresponding social preferences relations. Suppose that for each the two individual ordering relations are connected in the following ways: for x′ and y′
For a more detailed discussion, see Okhrimenko (2021).
27
24
Chapter 1
distinct from a given alternative x, x′ Ri′ y ′ if and only if x′ Ri′ y ′; for y′, x Ri y′ implies x Ri′ y ′; for all y′, x Pi y′ implies x Pi′ y ′ . Then, x P y if x P′ y” (p. 26). iii) Condition 3 (the independence of irrelevant alternatives): “Let R1,.., Rn and R1′ ,.., Rn′ be two sets of individual orderings and let C(S) and C′(S) be the corresponding social choice functions. If, for all individuals and all and in a given environment S, x Ri y if and only if x Ri′ y , then C(S) and C′(S) are the same” (p. 27). iv) Condition 4 (citizens’ sovereignty condition): SWF should not be imposed (p. 29); SWF is imposed if “for some pair of distinct alternatives x and y, x R y for any set of individual orderings R1,… , Rn where R is the social ordering corresponding to R1,.., Rn ” (p. 28). v) Condition 5 (condition of non-dictatorship): SWF should not be dictatorial (p. 30); SWF is dictatorial if “there exists an individual such that, for all x and y, x Pi y implies x P y regardless of the orderings R1,.., Rn of all individuals other than i, where P is the social preference corresponding to R1,.., Rn” (p. 30)28. In order to prevent IUC29 in the SWF analysis, Arrow (1951) introduces the conditions of individual preferences admissibility and independence of irrelevant alternatives. The famous General Possibility Theorem (also known as Impossibility Theorem) asserts that if the number of available options exceeds two, and the social welfare function fulfils two criteria mentioned above, it might be either imposed or dictatorial. Evidently, Arrow’s (1951) approach opened the space for analysing social choice from the lens of individual values or social preferences. As Suzumura (2019) points out, “Arrow’s social choice theory asks whether there exists a social aggregation procedure embodying several normative desiderata, through which a social value is endogenously constructed based on individual values. In other words, social aggregation procedure à la Arrow is not exogenously given; it is an endogenous variable to be rationally designed and socially chosen”. To illustrate the aforementioned idea, let us consider the following example. As Rawls (1971, p. 32–33) states, the society faces a trade-off between a higher degree of equality and higher total social welfare (in this case, welfare stands for the overall level of consumption and quality of life rather than for aggregate social utility). Assuming that all the individuals constituting a society keep strongly egalitarian views, The implications of these assumptions are discussed in detail in Okhrimenko (2021). Inter-personal utility comparison, i.e., assessing utilities of different agents associated with the identical or different goods using the same scale.
28 29
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they unanimously prefer equality to efficiency. If this is true, then, according to Arrow’s (1951) framework, social welfare is maximized when social resources are allocated in an egalitarian manner. Correspondingly, the egalitarian distribution should be treated as the social choice or social optimum point. In contrast, Bergson’s (1938) EWF30 formulation assumes that the total social welfare depends on the overall level of welfare in a sense it is described by Rawls (1971)31. Perhaps, it is possible to say that Arrow’s (1951) framework for social choice analysis preserves the spirit of the utilitarian attribution. The egalitarian pattern of the social resources allocation is perfectly legible as long as it satisfies the conditions specified by Arrow (1951). In other words, if egalitarian choice maximizes the aggregate social well-being (since SWF is viewed as the aggregate of individual orderings), it is qualified as the social choice. Therefore, although Arrow’s SWF is not required to take the form of the Benthamite SWF, it incorporates the purely utilitarian objective of social utility maximization (although the elements of deontological reasoning are clearly present in Arrow’s framework). At this point, let us analyse the implications of Arrow’s (1951) SWF formulation in the context of social exchange and social dynamics. Asserting that formal institutional environment describes the fundamental principles specifying the patterns of distribution and redistribution of social goods (Should richer individuals be subject to higher average tax rates? Should the government provide affordable medical care? Should the government subsidize education? And to what extent?). As discussed in the previous section, the neoclassical research program recognizes a kind of social sentiment in the form of an assumption that individual utility is positively dependent on the utility of other “agents of interest”. Provided that the social planner is a benevolent and selfless agent, whose decisions are always in favour of the society and who treats all the agents equally (i.e., provided that SWF is not imposed, not dictatorial, and no inter-personal utility comparison is allowed), Arrow’s framework implies that public policy design perfectly reflects the shape of the exogenous social preferences of agents constituting the population. Perhaps, this idea seems pretty trivial at this point. However, it has important implications for explaining and conceptualizing the process of social change and institutional evolution – we will get back to it at the end of this chapter. Bergson (1938) uses the term “economic welfare function”, or EWF. Rawls (1971) discusses the trade-off between welfare and equality, understanding welfare as agents’ utility derived from consumption. In contrast to the aforementioned relatively narrow definition of welfare, Arrow’s (1951) framework does not concentrate on the agents’ underlying motives, emphasizing their “orderings” solely. Consequently, the agents might derive utility from consumption or the fact the society functions in accordance with the agents’ normative attributions.
30 31
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1.4. Procedural and ecological rationality as the alternative to the optimization paradigm Gigerenzer et al. (1999) understand ecological rationality as the feature of heuristic strategy, asserting that the degree of ecological rationality depends on the degree to which the subject is adapted to the structure of the external environment. Less formally, the ecological rationality criterion addresses the agents’ ability to design, transform, and adjust their behavioural strategies constrained to their habitat. Under the aforementioned theory, substantive rationality does not operate as the normative principle of rational human behaviour anymore. Ecological rationality is a descendant of the procedural rationality concept developed by Simon (1968), who emphasized that operating in the conditions of uncertainty requires human beings to rely both on conscious analysis and feedback from the external environment (Simon, 1990). Under the neoclassical framework, the necessary condition of rationality is achieving the best possible outcome (a utility-maximizing consumption bundle, a cost-minimizing combination of inputs, a social welfare-maximizing public policy, etc.). In contrast, under the procedural rationality framework, human rationality is revealed in the process of designing an intelligent strategy of interaction with the external environment and the ability to interpret the signals coming from the external environment. The ecological rationality framework might be treated as Simon’s (1968) abstract concept of procedural rationality utilized in applied decision-making science. Due to the complexity of the external environment and the lack of certainty (Gigerenzer, 2000; 2007; 2008a; 2015), agents pursuing the appropriate principles of communication and interaction have better chances for survival than agents rational in the substantive sense. The ecological rationality paradigm is argued to serve as the appropriate theoretical foundation for both the individual patterns of conduct and decision-making (Gigerenzer, 2000; 2007; 2008a; 2008b; 2015) and social interaction (V. Smith, 2003; 2010) analysis. Such uniformity might be mistaken for heterogeneousness: for instance, Dekker and Remic (2008) assert that “there are two different conceptions of ecological rationality, which represent different ways of integrating psychology and economics” (p. 303), represented by G. Gigerenzer and V. Smith, respectively. This claim can be, to some extent, justified by the fact that, for Gigerenzer (2000; 2007; 2008a; 2008b; 2015), the central area of interest is the process of selecting, transforming, and adjusting the strategies by individuals, while V. Smith (2003; 2010) concentrates on the nature and role of “spontaneously developed social structures” (“collective intelligence”). However, following social norms represents a particular type of heuristic strategy (see Blythe
Pro-social behaviour under the neoclassical research program and the process of social change
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et al., 1999; Rand et al., 2014; Rand et al., 2016), and only functional social norms successfully pass the selection process, being shaped by the “collective intelligence”. Therefore, unlike the substantive rationality framework, the ecological rationality framework does not demonstrate any inconsistency between the micro- and macro-level analysis. Correspondingly, there is no need to draw a borderline between “two different conceptions of ecological rationality”.
1.5. The nature of social norms Before discussing the nature of social norms and institutions, one should start with terms and definitions (since there is much controversy in this field). North (1990; 1991) defines institutions as “the humanly devised constraints that structure political, economic and social interaction” (North, 1991, p. 97). From North’s (1991) perspective, the principal function of institutions is reduction of uncertainty through establishing unified “rules of the game” for all the agents. Wealth-maximizing agents are likely to cooperate during the repeated games, under perfect information, and provided that the number of players is relatively small. However, in a complex and uncertain environment, the opportunities for cooperation diminish. Institutions serve as mechanisms “solving the problems of human cooperation” (p. 98). Under North’s (1991) framework, the term “institutions” is general enough to involve “both informal constraints (sanctions, taboos, customs, traditions, and codes of conduct) and formal rules (constitutions, laws, property rights)” (p. 97). Aoki (2007) defines institutions as a “self-sustaining, salient pattern of social interaction, as represented by meaningful rules that every agent knows, and incorporated as agents’ shared beliefs about the ways the game is to be played” (p. 6), emphasizing the endogenous nature of institutional changes. For the sake of clarity, hereafter, formal institutions stand for rules of conduct introduced, supervised, and reinforced by central authorities. In contrast, social norms are understood as uncodified rules, principles, and values governing the process of social exchange and social interaction, according to V. Smith (2010). The necessity to distinguish between the social norms and formal institutions instead of elaborating on North’s (1990; 1991) classification arises from the inconsistency between the North’s (1990; 1991) institutional exogeneity assumption (Aoki 2007) and the entire principle of evolutionary change discussed by Simon (1968) and V. Smith (2010). Besides, denoting social norms and formal institutions using the same term means ignoring the fact that solely formal institutions are subject to central authorities’ supervision and reinforcement.
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Albeit one cannot doubt the existence of social norms and their role in regulating the social exchange process, they are hardly compatible with the reductionist manner of the orthodox research program. As discussed in the previous section, social preferences serve as the only tool the neoclassical research program has at its disposal for assessing and analysing the phenomenon of pro-social behaviour, assuming “selfless” behaviour to arise from agents’ deliberate self-optimization. The framework proposed by V. Smith (2010) leaves more room for the analysis of social norm development and calibration. As he argues, “other-regarding behaviour does not require other-regarding utility” (p. 21), undermining the neoclassicists’ attempts to explain pro-social behaviour through the prism of self-optimization. V. Smith (2010) proposes a framework under which institutions (l) are understood as “rules of message exchange and contract in a market” (V. Smith, 2010, p. 31) assumed to construe “the mapping of messages [M] into outcomes [X]” (V. Smith, 2010, p. 31): I:M → X Agents’ messages are understood as revealed terms of the contract offered to the other participants of social exchange. The process of choosing messages (behaviour B) is constrained by the character of environment E depicting the scope of agents’ characteristics and qualities, which is conditional to the rules of conduct I: B(E | I ) → M Under the framework discussed above, institutions serve as “algorithms whose property right rules define outcomes, given messages, whereas agent behaviour is represented by decision algorithms for choosing messages, given the agents’ environment and the institution” (p. 31). As V. Smith (2010) discusses, fundamental institutions are the product of an evolutionary selection of the behavioural patterns facilitating the process of social exchange, thus reinforcing the objective of social prosperity and survival. For instance, property rights guarantee that some proportion of income, which is not consumed, can be utilized in the future as a production input; in other words, property rights make capital accumulation possible. An additional exciting point is that V. Smith (2010) recognizes the role of constructivist rationality32 in generating a variety of institutions, Simon (1968) distinguishes between substantive and procedural rationality. While the latter stands for the ability to choose the appropriate course of decision-making, including the capability
32
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while ecological rationality is revealed in the process of their selection. Interestingly, this coincides with the ideas expressed by institutionalists, such as Hindriks and Guala (2014). They distinguish between “real” and “nominal” rules, where the latter stands for the meaningless rules of conduct, which are not respected by the agents (i.e., the rules, which have not survived the process of evolutionary selection). Similarly, as Aoki (2007) mentions, “even when the objective existence of a statutory law in the books is unquestionable, if nobody believes it to be implementable or enforceable, it will not prevail as an institution” (p. 8). It shall be noticed that V. Smith (2010) does not provide any further insight into the process of institutions design, except for expressing the idea that the existence and character of formal institutions are justified by the importance of social exchange. Therefore, one might notice a kind of contradiction: on the one hand, institutions are shaped and calibrated in the context of social exchange and inter-human interaction; on the other hand, when it comes to the links between agents’ behaviour, agents’ environment (also incorporating social norms), and institutions, the latter seems to play the role of exogenously defined constraints (as implied by the formal model setting presented above). Any further insight regarding the effect of agents’ environment (including social norms and values) seems to be missing. According to Aoki (2007), the process of institutions’ development reflects the view of the nature of institutions. One of the approaches (referred to as “institutions as rules in a hierarchical order” – p.1) implies the exogenous character of institutions. Under this paradigm, the institutional environment and economic environment are separated: “rules of the game” (i.e., legal rules and social norms) are treated as pre-determined constraints. At the same time, presumably efficient and rational markets attempt to achieve their goals under the aforementioned constraints. Using Simon’s (1968) terminology, institutions might be treated as a part of the “outer environment”, while the economic objectives of the market agents constitute the “inner environment”. The rivalrous paradigm views institutions as “institutionalized rules as something spontaneously and/or endogenously shaped and sustained in the repeated operational plays of the game itself” (Aoki, 2007, p. 2). As the author argues, the critical feature of institutions is their duality: institutions are part of the objective reality; at the same time, to be part of the actual reality, they should constitute some aspects of mental models shared by the agents. Under to interpret signals from the external environment and adjust one’s actions path accordingly, the former corresponds to rationality in a sense adopted by the orthodox economic framework, i.e., the ability to make the optimal decision. V. Smith’s (2010) notion of constructivist rationality mostly corresponds to Simon’s (1968) substantive rationality (it should be mentioned, however, that V. Smith frequently puts an emphasis on the ability to pursue narrowly defined self-interest when he refers to constructivist rationality).
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such a framework, institutions develop in the process of approaching a game equilibrium, then being crystallized as explicit objective rules. The important thing to underline is that the approach suggested by Aoki (2007) does not contradict V. Smith’s (2010) view of institutions. However, V. Smith’s (2010) framework seems to be more relevant to the present discussion. It naturally incorporates both the notions of constructivist and ecological rationality in governing the process of social exchange, putting more emphasis on the formal institutional framework design. Respectively, the formal institutional environment is assumed to be exogenous in the short-run perspective, being the product of central authorities’ design and carrying the role of the “variety generator”. Correspondingly, social norms, triggered by the changes in the external environment, are adjusted and calibrated. Still, formal institutions are also subject to natural selection in the long-run perspective: unless they are not designed in line with the principles of social sustainability, sooner or later, there will be no society to serve as a medium for the particular formal institutional framework33.
1.6. The principles of reductionism and methodological individualism in the neoclassical research program Verschuren (2001) describes the reductionist approach as the paradigm based on the idea that any complex system can be decomposed into the basic elements and studied through analysing the elements mentioned above. According to Trout, “reduction is often formulated as the claim that some object, state, process, event, or property “is just” or “is nothing more than” the physical ingredients that compose it” (Trout, 1991, p. 387). Following the notion of predicate reductionism (Trout, 1991), no complex system can possess any features other than features of its components. Silberstein and McGeever (1999) distinguish between the strong and the weak form of ontological reductionism. The former entails that the complex system is nothing but the sum of its elements, while the latter also incorporates the effects of interactions between the agents. Nevertheless, the perfect micro-determination is assumed. To make this more relevant to the present discussion, the process of social interaction is frequently assessed under the conventional game theory framework under the neoclassical research program. Although such a framework includes the Although Smith (2010) attributes the role of variety generator to constructivist rationality, leaving the task for appropriate institutions selection to ecological rationality revealed in the process of social exchange, the latter idea about natural selection of formal institutions is not presented explicitly. Nevertheless, since it naturally arises from what Smith (2010) discusses, it shall not be presented as the product of own effort.
33
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effects of strategic interaction (i.e., the agents deliberately and consciously maximize their expected pay-offs, keeping in mind that the pay-offs are determined not only by their strategies but also by the strategies pursued by the counter-players), the game framework remains unchanged. In other words, perfectly rational agents are still perfectly predictable; their interaction cannot result in any outcome besides the set of outcomes specified by the exogenous game setting. Some examples of the weak form of reductionism in economic research arise, for instance, from introducing the element of game theory to the analysis of social exchange (see, for instance, Hoffman et al., 1994). However, as long as perfectly rational and perfectly predictable agents act under the exogenously defined rules, there is no place for evolution and spontaneous structures. In other words, the system remains perfectly predictable. According to Chorafakis (2020), atomistic aggregativity (interpreted in the same way as Trout’s reductionism and Colander’s methodological individualism) is one of the prominent features of the neoclassical research program. Verschuren (2001) juxtaposes reductionism to holism, defining the latter as “the tendency to look at an object as a whole” (p. 393). However, as the author admits, the ability to perceive the phenomena holistically is beyond the capacity of a human mind: even when trying to assess a phenomenon comprehensively, we cannot concentrate on all its aspects simultaneously. “True holism” is rather an idealistic concept; therefore, in the present discussion, the terms “holistic” and “holism” are used to indicate the denial to apply the reductionist logic to analysing social phenomena. Chorafakis (2002) opposes reductionism to emergentism, explaining it based on Wimsatt’s (2000) notion of non-aggregativity34. Under the neoclassical framework, assessing the preferences of the “representative individual” is assumed to be sufficient for analysing social exchange dynamics. Perfectly rational agents (in the sense of the choice consistency) are perfectly predictable. Consequently, the dynamics of the complex social system can be assessed through the process of individual agents’ self-optimization. Since altruism and pro-social behaviour are the undeniable social reality facts, the neoclassical framework cannot neglect these phenomena. However, due to its reductionist nature, the aforementioned framework cannot assume any social environment traits which are not featured by individual agents (i.e., elements of the complex system). Informally, pro-social and altruistic behaviour arises exclusively from deliberate “A system which is aggregative for a given decomposition is almost trivially mechanistically explicable: the parts all have the property in question, and enter into the explanation of how the system has it in the same simple way. Relationships with other parts are usually either monadic (i.e., non-existent) or of relatively low order, and would tend to meet strong conditions of symmetry and homogeneity” (Wimsatt, 2000, p. 288).
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self-optimization. Therefore, in line with the previous statement, other-regarding preferences serve as the mechanism allowing for an analysis of the benevolent attitude while adhering to the conventional economic theory principles.
1.7. Social preferences or social norms? The modern social choice theory was developed under the shield of the neoclassical research program. The dominating principle of methodological individualism naturally shapes the way in which collective choice is addressed by orthodox economics. The collective choice is viewed as the simple aggregation of the individual preferences while neglecting the interaction effects (or assuming that all the interaction effects are perfectly deterministic). Exogenous social preferences (or other-regarding preferences) are the only possible way to account for the existence of social sentiment and its role in shaping the social exchange dynamics while preserving the fundamental principles of neoclassical economics. From this perspective, any act of pro-social behaviour is the result of deliberate self-optimization. In effect, it implies replacing the strong form of ontological reductionism with a weak one, following Silberstein’s and McGeever’s (1999) terminology. The key argument addressed in this chapter is not related to whether social preferences are indeed rational (i.e., consistent), general suitability of methodological individualism (reductionism) in the field of analysing a social interaction, or the application of the optimization approach towards formulating social policy. Instead, the aim is to examine the policy biases resulting from the dominance of methodological individualism towards formulating social policy. Assuming exogenous social preferences (and assuming that the notion of social preferences can roughly account for the entire scope of values, beliefs, principles, and norms), we must give up on any attempt to conceptualize the process of social change (or the long-run social exchange dynamics). Under the mainstream approach, the interaction between the agents is depicted through the prism of the conventional game theory, when perfectly rational agents deliberately maximize their pay-off under the perfect information (i.e., under the absence of radical uncertainty). Consequently, the role of the public authorities in shaping the long-run social exchange dynamics is limited to ensuring credibility and contract reinforcement, pretty much in line with North’s (1990) ideas of good institutions. Properly formulated public policy (or a properly designed set of formal institutions) can help to achieve the Pareto-efficient outcome. Nevertheless, it cannot (and is not expected to) change the entire game setting.
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Institutional change requires a transformation of beliefs, expectations, and normative attributions. However, the neoclassical model of society is utterly atomistic, leaving no space for spontaneously developed social arrangements or common intelligence. In other words, any kind of institutional change (the guarantee of equal rights, widening the scope of civil rights, establishing animals’ rights, criminalization of domestic violence, and so on, and so forth) can be only conceptualized as i) radical exogenous change in social preferences; or ii) violating the principles of the collective choice under the orthodox economic framework. In contrast, admitting to the idea that social exchange is governed by social norms, at the same time contributing to their creation, makes things make much more sense. And this is the main argument against the neoclassical social choice theory pursued in this chapter.
1.8. Conclusion Under the mainstream economic framework, pro-social behaviour can be only conceptualized, explained, and analysed as the product of conscious self-optimization. Consequently, stable and exogenously defined social preferences serve as the mechanism incorporating altruistic motives to the neoclassical research program due to the reductionist approach featured by the latter. The rivalrous approach – ecological rationality school – denies the Max-U decision-making principle, e.g., the idea that decision-making can be conceptualized as the deliberate self-optimization process. From this point of view, pro-social behaviour is viewed as following social heuristics, which is subject to endogenous development and evolutionary selection. Not attempting to question the ontological ground of the neoclassical social preferences and public choice framework, the present discussion addressed the question of whether the process of social change (i.e., the transformation of informal institutional environment and individuals’ normative attributions) can be adequately explained under the orthodox research program. Under the neoclassical framework, the process of informal institutional environment metamorphosis can only occur under the exogenous change in social preferences (i.e., individuals’ values) or under violating the SWF assumptions of non-dictatorship and non-imposition. In other words, there is no way to assess the evolution of social norms as the endogenous process. Moreover, the very idea of social norms is not compatible with the atomistic approach to social exchange and social interaction. Therefore, one can conclude that the neoclassical research program is unable to incorporate the pro-social behaviour phenomenon.
Chapter 2
Cultural environment, values, and well-being – a clustering analysis While the orthodox economic framework is unable to incorporate and explain the links between the informal institutions, formal institutions, and policy outcome, the heterodox research program offers a variety of theories (frequently conflicting, as discussed in this chapter). The present study attempts to investigate the links between culture, the quality of the formal institutional environment, and subjectively assessed well-being using unsupervised machine learning methods. The key idea is to investigate whether cultural environment homogeneity implies similarity in terms of formal institutional environment quality and the level of well-being. Instead of using country-level aggregates, this study relies on the micro-level data (i.e., individual observations) provided by the World Values Survey (WVS) database (Wave 7). The structure of the chapter is as follows. The first section examines the links between cultural environment, formal institutions, and well-being, discussing the nature and typology of culture, the links between culture and informal institution design alongside the cultural and institutional determinants of economic development. The second section discusses methodology, including data, clustering algorithms, and preliminary data analysis. The third section presents and interprets the results. Finally, the last section provides a conclusion.
2.1. Cultural environment, formal institutions, and well-being 2.1.1. The nature and typology of culture. During the last couple of centuries, the understanding of culture has changed dramatically; having originated as the normative concept (i.e., the desired set of beliefs, values, and behavioural patterns), nowadays, the notion of culture serves rather as an attribute of a particular group, society, or community (Johnson, 2013). Frequently quoted Kluckhohn’s (1951) definition of culture suggests that “culture consists in patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups, including their embodiments in artifacts; the essential core of culture consists of traditional (i.e., historically derived and selected) ideas and especially
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their attached values” (p. 86). Hofstede (1991) describes culture as “the collective programming of the mind which distinguishes the members of one group or category of people from another” (p. 5). From Matsumoto’s (1996) perspective, culture serves as “the set of attitudes, values, beliefs, and behaviours shared by a group of people, but different for each individual, communicated from one generation to the next” (p. 16). When discussing the nature of culture, Geertz (1973) warns against perceiving culture as “power, something to which social events, behaviours, institutions, or processes can be causally attributed” (p. 14). Instead, culture is “best seen not as complexes of concrete behaviour patterns – customs, usages, traditions, habit clusters”, but “as a set of control mechanisms – plans, recipes, rules, instructions (what computer engineers call «program») – for the governing of behaviour” (Geertz, 1973, p. 44). From such a perspective, visible and measurable aspects of human interaction in the social group can only serve as the rough proxies for principles determining social exchange and interaction patterns. The present discussion concentrates on the role and nature of the social self-regulating mechanisms and outcomes associated with the different kinds of the aforementioned mechanisms. Geertz’s (1973) definition, although neglecting some aspects of the cultural environment, emphasizes the role of implicit uncodified rules, beliefs, and values. Therefore, in further discussion, interpretation of culture coincides with Geertz’s (1973) definition of culture. The present research addresses the links between culture, formal institutions, and well-being. When trying to assess the cultural traits determining the quality of formal institutional environment and well-being, identifying the principal dimensions of the cultural environment seems to be a crucial stage. Schwartz (2014) states that the character of cultural environment can be assessed based on normative attributions – “conceptions of what is good and desirable”, or values (p. 548). In line with this statement, all the cultural typology systems emphasize different sets of core values dominating society. Hofstede and Bond (1988) design a five-dimensional typology of culture, which includes: • power distance: the degree to which parties disposing of a minor degree of power accept such power inequality; “it suggests that a society’s level of inequality is endorsed by its followers as much as by its leaders” (p. 10); • individualism vs. collectivism: “the degree to which individuals are integrated into groups” (p. 10); • masculinity vs. femininity: the dimension reflecting the gap between “assertive” and “nurturing” poles; • uncertainty avoidance: the degree to which individuals can act effectively in the unanticipated situations;
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• and long-term vs. short-term orientation (initially discussed solely in the context of so-called “Confucian dynamism”): the dimension reflecting time orientation (future vs. present and past). Hofstede et al. (2010) enrich the scope of cultural dimensions adding the indulgence vs. restraint aspect, representing the scale between gratification and control of human desires. Inglehart and Welzel (2005) view self-expression vs. collectivism as the principal determinant of cross-country cultural heterogeneity (and level of development variation, as discussed in the next section). Self-expressive values are closely associated with general emancipative values, such a secular-rational values, while the essence of collectivism lies in conformity, which, subsequently, leads to a more traditionalist mindset. Schwartz (2014) introduces the cultural dimensions map based on “Weberian ideal types”. The author specifies three dimensions of cultural values, namely: • autonomy vs. embeddedness: the dimension reflecting the degree of autonomy accepted in the society, when autonomy is understood as the degree to which cultural environment “encourage[s] people to cultivate and express their own preferences, feelings, ideas, and abilities, and to find meaning in their own uniqueness” (p. 551); • egalitarianism vs. hierarchy: the dimension reflecting the methods of ensuring coordination on the society, when egalitarian cultures “urge people to recognize one another as moral equals who share basic interests as human beings [and] socialize people to internalize a commitment to cooperate, to feel concerned for the welfare of all, and to act voluntarily to benefit others” (p. 551), while cultures featuring a strong sense of hierarchy “rely on hierarchical systems of ascribed roles to insure responsible, productive behaviour [and] define the unequal distribution of power, roles, and resources as legitimate and even desirable” (p. 552); • mastery vs. harmony: the dimension describing the extent to which intervention to the natural and social environment is justifiable; while cultures with harmony orientation “emphasize fitting into rather than exploiting the social and natural world, accepting, preserving, and appreciating the way things are rather than trying to change them” (p. 552), cultures with mastery orientation “encourage active self-assertion by individuals or groups in order to master, direct, and change the natural and social environment, and thereby to attain group or personal goals” (p. 552).
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2.1.2. On the idea of country-specific culture Minkov and Hofstede (2011) address the question of whether the aggregated micro-level data can serve as the appropriate indicator for the cultural environment in the country. In a broader sense, their study addresses whether the national culture is a valid concept in the light of regional heterogeneity. The authors cluster 299 regions from 29 countries located in East and Southeast Asia, sub-Saharan Africa, Latin America (the samples were clustered separately). The clusters obtained were mostly consistent with the national borders, thus confirming the validity of the national culture concept. However, the samples for clustering were pre-specified in accordance with existing regional cultural maps; similarly, the number of clusters was specified in accordance with the number of countries constituting the sample. Such a strategy, naturally, worked in favour of the conclusions of the study. However, even assuming that Minkov’s and Hofstede’s (2011) findings are reliable and robust, the criticism of the national culture can go beyond the issue of regional heterogeneity. Hofstede et al. (2010), Minkov and Hofstede (2011), Inglehart and Welzel (2005), Schwartz (2014), and the vast majority of studies dealing with cultural mapping (Shoham and Alon, 2010; Mensah and Chen, 2012; Ronen and Shenkar, 2013; van Vlimmeren et al., 2017) assess the cultural environment and cultural clusters of countries based on the aggregate country-level data. Although the country-level indicators are computed based on the individual responses (and using the weights corresponding to the socio-demographic characteristics of the respondents and the entire population – see WVS methodological notes), such a strategy is still easy to challenge (even assuming that research samples are perfectly representative). One can consider the following examples. Let us assume that, in country A, the views on whether abortions (or homosexuality, divorce, euthanasia, military intervention, public healthcare for drug-addicts, etc.) are justifiable are extremely polarized: while half of the population considers the right to abortion a basic human right, the other half argues that abortions should be criminalized. In country B, all the individuals keep less radical views, thinking that abortions are definitely not desirable but can be justified in some cases. Let us consider that, on average, the scores of acceptance are equal in the two countries. However, it does not imply that we shall expect similar societal development dynamics in both countries.
2.1.2. Culture or informal institutions? North’s (1990) typology of formal and informal institutions is a standard nowadays. The aforementioned typology distinguishes between formal and informal
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institutions, where the former describes the rules reinforced by the central authorities, and the latter stands for the set of uncodified rules. In the previous chapter, informal institutions were conceptualized as a set of social norms. Social norms can be described as a sort of heuristics, providing some ready-to-use solutions in the complex multi-agent and uncertain social environment. Social norms are endogenous in the sense of being a product of social arrangements and negotiations rather than deliberate optimization design by central authorities. The notion of social norms was juxtaposed to the social preference constraint which serves as the only way to assess social sentiment without violating principles of the neoclassical research program. While social preferences are the attributes of individual agents, social norms are the product of common intelligence, being subject to evolutionary selection, adjustment, and transformation. Although social norms seem to be an appropriate concept for the purely theoretical inquiry, sticking to the same notion might be extremely challenging when performing the empirical analysis. In contrast to the formal institutions, social norms are not codified, and (to the author’s best knowledge), there seems to be no uniformly recognized method of assessing the character of the social norms dominating the society. Therefore, the empirical inquiry into the links between informal institutions, formal institutions, and policy outcomes would require defining different operating concepts for the informal institutional environment. Alesina and Giuliano (2015), addressing the links between cultural environment and formal institutions, argue that the notion of culture captures the traits traditionally associated with informal institutions, i.e., self-reinforcing values and beliefs. Therefore, the authors refuse to use the notion of formal institutions (since it creates an impression of subordination of informal institutions to the formal institutions) and assess characteristics of culture as the features of the informal institutional environment. This study adopts a similar methodology, assessing the character of informal institutions based on the broader concept of culture.
2.1.3. The links between cultural environment and the design of formal institutions There is plenty of evidence demonstrating both how culture shapes formal institutional norms and how changes in the formal institutional environment can trigger informal institutional environment transformation. Fischer (1989) explains cultural and institutional heterogeneity in the United States by analysing dominant views and norms among four massive waves of immigration. The first wave took place in 1629–1640 and was mostly represented by British
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Puritans relocating to Massachusetts. Fisher (1989) asserts that their norms and values can be explained based on four liberties: “collective liberty, individual liberties, soul liberty and freedom from the tyranny of circumstances” constituting the “ordered liberty” and “public liberty”. The respect for public liberty was associated with imposing numerous restrictions on individuals and relying on collectively made decisions which were later reflected by laws reinforcing universal justice and local government organization in Massachusetts. The second wave of immigration (1642–1675) was the migration of the Royalist elite and their servants to Virginia. Fisher (1989) characterizes their normative attributions as “hegemonic liberty”, which can be described as the “power to rule, and not to be overruled by others”. The aforementioned type of liberty is radically anti-egalitarian, treating some individuals as naturally superior to others (in this sense, a “natural” state of affairs means that it shall not be questioned or require any further justification). Consequently, the system featuring the minimal role of the government and inadequate mechanisms of income redistribution, at the same time, preserving the rights of the elite, became dominant in the region. The third wave was the relocation of Quakers to the Delaware Valley (1675–1725). Attributing great importance to universal equality and justice, they were the first group to condemn slavery in the United States. The last large wave of migration took place in 1718–1775 when people from Northern England, Ireland, and Scotland were moving to the Appalachian back-country. Fischer (1989) describes their views as “natural liberty”, describing it as the most radical notion of liberty (and very different from the Puritan notion of public liberty associated with numerous restrictions and constraints for individuals). Pretty intuitively, the idea of a strong government is not consistent with such a mindset, which resulted in establishing a system with minimum government intervention in the region. Mautner (2011) discusses the approach featured by the German historical school of law, which treats culture as the primary determinant of the legal system design: “law begins as culture, eventually becoming the law of the nation” (p. 844). While the French Enlightenment movement supported the idea of legislation that promoted some universally accepted principles and doctrines allowing for rational social life organization, the German historical school of law viewed legislation as endogenously developing constraint originated in norms and beliefs shared by the individuals or culture. Admitting that such an approach might be out of date, Mautner (2011), nevertheless, agrees that it might be helpful in the context of retrospective analysis of the modern juridical systems roots. Geertz (1983) expresses quite the opposite view, treating law as one of the “local knowledge” dimensions:
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If one looks at law this way, as a view of the way things are, like, say, science or religion or ideology or art – together, in this case, with a set of practical attitudes toward the management of controversy such a view seems to entail to those wedded to it – then the whole fact/law problem appears in an altered light. The dialectic that seemed to be between brute fact and considered judgment, between what is so and what is right, turns out to be between, as I put it earlier, a language, however vague and unintegral, of general coherence and one, however opportunistic and unmethodical, of specific consequence (p. 184).
Such a perspective implies that law, or formal institutions, serves as a source of meaning for individuals, shaping the way they interpret facts, and their normative attributions, accordingly. In defence of this argument, Mautner (2011) describes the process of legal system transformation in the United States, when abandoning legal formalism in favour of the legal realism, facilitated the adoption of the “constitutive” rather than “instrumental” view on the legal system. In other words, a formal institutional environment might serve as a trigger for cultural change and transformation. In contrast, North’s (1990) view rooted in the orthodox economic framework suggests that “informal constraints that are culturally derived will not change immediately in reaction to changes in the formal rules” (p. 45). Formal institutions can be exogenously changed, while informal institutions are shaped by cultural inheritance. This point of view suggests that adopting a new set of formal institutions might not lead to the desired policy outcome due to informal constraints. As discussed earlier, such a view, although hypothetically implying the process of social norms evolution, is unable to explain or conceptualize it. Becker et al. (2015) use the historical evidence, juxtaposing the quality of governance in the Habsburg Empire to other Eastern European countries under different regimes (Ottoman and Russian Empire). The authors assert that supremacy of the formal institutional environment in the territories subordinate to the Habsburg Empire facilitated the development of trust towards government up to modern days since former Habsburg territories feature a significantly higher degree of trust towards government even nowadays.
2.1.4. Institutional and cultural determinants of economic development Sen (1999), being one of the pioneering theorists of economic development, views it as a process of expanding and enriching human freedom. Although the common proxies for economic development such as national output per capita, the degree of industrialization, or technological advance are essential indicators
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of development (since they might serve as the means for developing human freedom), they should not be mistaken for the essence of economic development. Sen (1999) defends his development-as-freedom views using two arguments. The evaluative reason asserts that progress should be judged based on whether the degree of human freedom is enhanced, while effectiveness reason states that “free and sustainable agency emerges as a major engine of development” (p. 5). When discussing the role of formal and informal institutions in promoting economic development (directly or instrumentally, i.e., through the development of commerce and technological progress leading to output growth), the very existence of social norms and formal institutions is commonly justified by their regulatory role. Hobbes (1651) argues that uniform social arrangements are developed and reinforced by the central authorities for the sake of human self-preservation when deliberate acceptance of the social norms is the most rational choice. Hume (1739) asserts that stability of possession, transference by consent, and performance of promises develop naturally in any society, as the aforementioned norms serve as the prerequisites for social exchange. When societies become larger and more complex, these natural norms are replaced with legal norms. North (1990) argues that institutions serve as the uniform rules of the game, reducing uncertainty and facilitating Pareto-efficient equilibria occurrence. From this perspective, well-established property rights and contract reinforcement serve as the principal aspects of the favourable institutional environment. In contrast to this view, Acemoglu et al. (2005) distinguish between political institutions (formal regulations) and distribution of resources (wealth inequality) as the determinants of the de-jure and de-facto institutions, respectively, arguing that institutions are the product of social conflict, not the mechanism of Pareto-optimal social equilibrium. Acemoglu et al. (2005) assert that good institutions allow for transforming production processes and innovation when such transformation conflicts with ruling the social groups’ objectives. Ownership of resources determines de-facto power, which can be used for enhancing the de-jure power, and so on. The authors, however, do not provide any conceptual model for the institutional change, arguing that it frequently depends on the unique historical opportunity. Schwartz (2014) refers to the cultural orientations as “normative responses”, arguing that “they prescribe how institutions should function and how people should behave in order best to deal with the key problems societies face” (p. 551). From this perspective, the cultural environment serves as the exogenous constraint for the formal institutional environment. Inglehart and Welzel (2005) adopt a different perspective, arguing that certain cultural traits are more desirable than others, and, assuming that dominating values and norms are endogenous (at
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least, in the context of the intergenerational change), social development can be promoted through reinforcing the self-expression values. As the authors argue, The rise of emancipative orientations, such as individualism, autonomy, promotion orientation, and self-expression values, reflects the process of human development. This has desirable civic consequences, because rising emphasis on autonomous human choice is inherently conducive to anti-discriminatory conceptions of human well-being. Finally, emancipative orientations are inherently people-centred, which is a major reason why rising emphasis on self-expression values is strongly linked with democracy (Inglehart and Welzel, 2005, p. 145).
Therefore, the process of social and human development is viewed as the transition from collectivist values (justified by the survival objective) towards emancipative values. Rodrik and Mukard (2020) view political rights, property rights, and civil rights as the principal aspects of liberal democracy. While most of the modern elective democracies feature a sufficient degree of respect towards political and property rights, achieving civil rights requires quite a unique combination of factors since civil rights constitute the main value for the most deprived and alienated members of the society, who do not have sufficient power to pursue their interests. Under the conceptual model developed by Rodrik and Mukard (2020), the success in achieving civil rights depends on the depth of “identity cleavage” or the degree of social fragmentation. In this sense, social capital and social trust might be viewed as the drivers of liberal democracy and enhancing human freedoms. Interestingly, it is quite easy to find the links between Rodrik’s and Mukard’s (2020) views and Inglehart’s and Welzel’s (2005) argument about self-expressing values (since they are associated with diminishing importance of group conformity and adopting broader views on human values). Tebaldi and Mohan (2010) and Asongu and Kodila-Tedika (2018)35 emphasize the role of political stability, effective government, and the well-designed legal systems preventing rent-seeking behaviour as the main factors contributing to economic growth and reducing inequality alongside poverty. At the same time, Rodrik (2008) argues that there is no uniform appropriate formal institutional design. For instance, in spite of North’s (1990) premise regarding the crucial role Replication of Tebaldi’s and Mohan’s (2010) study replacing monetary poverty with multidimensional poverty index. The study reports findings consistent with the prior results: democracy reduces poverty through raising the average income (rather than reducing income inequality) channel.
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of property rights and credibility, commerce can successfully develop even under the absence of these “fundamental institutions” thanks to the informal settlements. The evidence brought by Rodrik (2008) can be treated as the argument in favour of Hayek’s (1945) premise regarding the role of “spontaneous social arrangements”.
2.2. Research strategy description The literature review has demonstrated that there is no consensus regarding the links between culture and formal institutional design: while some researchers view culture as a stable and exogenous (yet endogenously developed) constraint (North, 1990), others conceptualize formal institutions (including legal institutions) as a potential trigger of the cultural change (Mautner, 2011; Becker et al., 2015). Analogously, it is hard to come up with a model of interaction between culture, formal institutions, and economic development. Nevertheless, all the pieces of evidence discussed in the previous section consistently emphasize the primary role of endogenous cultural change. The present research attempts to explore the aforementioned links utilizing the data clustering method. Clustering analysis is frequently applied for the sake of structuring massive multi-dimensional datasets. Alternatively, it can be identified as a method of classifying objects into groups without making any prior assumptions regarding the precise selection criteria. In the context of the present study, clustering analysis is used for several purposes, namely: i) investigating whether a unique country-specific environment exists; ii) assessing the groups of countries sharing similar cultural values; iii) assessing the groups of countries sharing similar features of the formal institutional environment; iv) assessing the groups of countries with a similar level of well-being; v) contrasting results obtained during stage ii) and stage iii) in order to assess the links between culture (informal institutions) and the quality of formal institutional environment; vi) contrasting results obtained during stages ii), iii), and iv) in order to assess whether the links between culture and formal institutional environment as well as the links between culture, formal institutions, and well-being exist. The data provided by Hofstede et al. (2010) are used as the benchmark for further analysis. The data for assessing various aspects of cultural and formal institutional environment was alongside subjective well-being provided by The World Values Survey (Haerpfer et al., 2020). As discussed earlier, the vast majority of studies
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dealing with cross-country cultural homo-/heterogeneity use country-level data for designing the clusters, where all the variables denoting various cultural environment dimensions are calculated as country-level aggregates. Since such a strategy ignores cultural environment heterogeneity within the country, the different methodology is followed in this study. The individual-level responses are used in order to design clusters. Then, the composition of clusters is analysed for each national sub-group, while the final classification is performed based on the dominating cluster (i.e., the cluster with the greater proportion of respondents from a particular country).
2.3. Data processing method Adolfsson et al. (2018) describe the generalized form of the clustering algorithm. The stages of the clustering analysis include data pre-processing, clusterability evaluation, algorithm selection and execution, and quality evaluation. This section describes all the stages of the clustering analysis in line with the aforementioned guideline.
2.3.1. Data pre-processing The present research attempts to assess the links between cultural and formal institutional environments by comparing the relevant classification of the economies analysed. It should be noted that in some cases, the variables were classified into different datasets intuitively. All the variables describing the shared values and beliefs were classified as cultural traits, in line with Geertz’s (1973) definition of culture. The questions dealing with the perceived quality of the formal institutional environment constituted a separate dataset (the principal criterion was whether agents’ satisfaction with or opinion about the particular aspects of how the society functions are strongly dependent on the central authorities’ policy). Finally, answers to all the questions dealing with respondents’ satisfaction with life were classified as well-being indicators. Below, the list of the datasets alongside the information about data specification is provided. • Dataset 1. The classification of countries according to cultural dimensions proposed by Hofstede et al. (2010) – 113 observations in total; the data provided by Hofstede et al. (2015). • Dataset 2. WVS indices, individual responses: the dataset includes 35 555 observations for responses from different countries. The range of variables includes all WVS indices, except for trust in the army, trust in the police, and
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trust in courts (since the aforementioned values are determined not only by the character of the cultural environment but also by the trustworthiness of the governmental institutions). The list of variables included in the dataset is presented in Appendix 2. • Dataset 3. Variables describing the character of the cultural environment: individual responses: the dataset consists of variables describing the character of the cultural environment. The variables correspond to the “Core variables” from the WVS dataset and consist of the following subgroups, following the original WVS classification: social values, norms, and stereotypes; social capital, trust, and organizational membership; economic values; perceptions of migration; index of postmaterialism; perceptions of science and technology; religious values; ethical values; and political culture, interest, and participation. The variables related to characteristics of the formal institutional environment (e.g., the perception of corruption, trust in governmental institutions) have been excluded from the dataset. WVS Wave 7 survey is still not complete; therefore, although the inclusion of the variables dealing with gender norms was initially intended, it proved impossible. The complete list of variables representing each subgroup is presented in Appendix 3. • Dataset 4. Variables indicating the characteristics of the formal institutions (i.e., subjective opinion regarding all the possible aspects of the interaction between citizens and authorities). The list of variables is presented in Appendix 4. • Dataset 5. Variables indicating subjective well-being. The list of variables is presented in Appendix 5. The WVS dataset consists of 70 867 individual observations collected in 49 countries (see the list in Appendix 1). In the further analysis, when using the WVS dataset (i.e., when using Dataset 2, 3, 4, and 5), a randomly selected sample of 5000 observations is used due to the constraints of computational capabilities. Since there are numerous gaps in WVS, the following procedure has been adopted: i) first, the sub-sets containing the variables of interest solely (WVS indices, cultural environment dimensions, quality of formal institutional environment, and the level of well-being) have been designed; ii) second, all of the observations with missing data have been removed; iii) finally, 5000 observations have been picked from each sub-set. All the datasets have been standardized prior to any further analysis.
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2.3.2. Preliminary data analysis and clusterability assessment The dataset consisting of random values with no cluster structure will still demonstrate the aforementioned structure if one applies a clustering algorithm. Therefore, before discussing the cluster structure of the data, one shall first verify whether data indeed have such a cluster structure. Adolfsson et al. (2018) name several approaches towards testing clusterability, depending on the adopted notion of clusterability: • Data reduction methods. Performing the cluster analysis of the high dimensional data might be challenging; therefore, the first step of analysing highly dimensional data usually includes dimension reduction. The Principal Component Analysis (PCA) is one of the frequently applied methods of dimension reduction. In the case of high-dimensional data, extracting the principal components is a recommended (yet not required) procedure. The principal component analysis is performed as the preliminary analysis. Appendix 6 demonstrates the distributions of the eigenvalues according to the principal component for each of the datasets analysed. In each case, the first principal component is characterized by the highest eigenvalue. In the case of the well-being indicator dataset (Dataset 5), the first component explains slightly below 50% of the variance, while the first principal component of the cultural environment dataset (Dataset 3) explains approximately 13% of the variance. In the remaining cases, the proportion of variance explained by the first component is approximately equal to 30%. • Testing clusterability vs. spatial randomness. Hopkins statistics is a standard method for assessing the spatial randomness of data. The null hypothesis of the test assumes that the dataset has been generated by the Poisson process, thus showing no cluster tendency. Hopkins statistics takes the value between 0 (uniformly distributed data) and 1 (dataset with a strong clusterability tendency). • Classic methods (testing original data for multimodality). The essence of the method lies in verifying whether the distances calculated are based on the original (i.e., non-reduced) scaled data. • New clusterability methods (as proposed by Adolfsson et al., 2018), including Silverman’s test on dissimilarities, dip test on principal component, and dip test on a principal curve. As Adolfsson et al. (2018) discuss, in the case of high dimensional data, testing clusterability via spatial randomness tends to produce biased results, indicating datasets with a priori clusterable structure as datasets featuring spatial randomness. Considered a significant number of variables analysed within a single database, the Hopkins test is suspected of reporting the absence of the cluster structure in
48
Chapter 2
the data analysed. Therefore, the conclusions regarding clusterability structure are to be derived from the results of Hartigan’s dip unimodality/multimodality tests computed for different distances. Consequently, the clustering algorithm is to be performed solely for distances featuring the multi-modal distribution. The present study would attempt to make minimal initial transformation of the data; thus, no pre-clustering dimension reduction is performed. The algorithm of the test is pretty simple and takes two stages: i) calculating the distance measures; ii) testing the obtained measures for unimodality using Hartigan’s dip test. As discussed in the later parts of the study, there is no consensus regarding the most appropriate distance measure to be used, and there are plenty of options. Due to the limited data computational capacity, eight popular distance measures are picked: five classical measures (Euclidean, Manhattan, Maximum, Canberra, and Minkowski) measuring the distance between coordinates and three correlation-based distances (Pearson, Kendall, and Spearman). The additional explanations regarding computing the aforementioned distances are provided in the next sections.
2.3.2.1. Cultural dimensions proposed by Hofstede et al. (2010) Figure 1 presents the heatmap of distances when Hofstede et al. (2010) cultural dimensions are considered. Hopkins statistics indicate the absence of the cluster structure, although the visual assessment of the clusterability tendency (see Figure 1) allows the detection of clusters alongside the grid. The results of Hartigan’s dip unimodality/multimodality test (see Table 2) demonstrate that maximum, Spearman, and Kendall distances feature a multimodal distribution. Figure 2 presents the location of the countries analysed, together with information about importance of a component for each observation (typically referred to as the quality of representation). The countries with a satisfactory quality of representation36 constitute several groups, namely: Latin American countries (Venezuela, Colombia, El Salvador, Mexico, Trinidad i Tobago), countries with prevalent Anglo-Saxon values (U.S., Canada, New Zealand, Ireland, and the United Kingdom), Eastern European countries (Serbia, Romania, Bulgaria, and Russia), and Central-Eastern European countries (Czech Republic, Estonia, and Lithuania). Here and further, the quality of representation is measured using squared cosine of a component with an observation. There is uniformly accepted critical value of the squared cosine, so, following the rule of thumb, the discussion concentrates on observations featuring the value of cos2 > 0.5.
36
Cultural environment, values, and well-being – a clustering analysis
49
Figure 1. The heatmap of the Euclidean distances computed based on dataset containing variables describing the character of the cultural environment specified by Hofstede et al. (2010) (power distance; individualism vs. collectivism; masculinity vs. femininity; uncertainty avoidance; long-term vs. short-term orientation; indulgence vs. restraint, country-level aggregates – Dataset 1) (n=50; Hopkins statistics ≈ 0.31) 24-
16-
84-
80-
81-
73-
9-
96-
56-
59-
33-
58-
46-
43-
106-
47-
85-
21-
86-
76-
62-
68-
48-
52-
44-
26-
77-
54-
35-
11-
value
93-
100
37-
50
60-
0
7-
98-
75-
87-
104-
78-
41-
32-
20-
64-
4-
100-
15-
90-
105-
65-
22-
99-
72-
34-
69-
92-
27-
70-
18-
101-
6-
50-
-
-
-
-
-
24
-
16
80
84
-
-
81
-
73
-
9-
-
96
-
59
56
-
33
-
58
-
46
-
6-
43
-
47
10
-
-
85
-
21
-
86
-
76
-
68
62
-
-
48
-
52
-
44
-
26
-
-
54
77
-
35
11
-
93
-
37
-
7-
60
-
98
-
75
-
4-
87
78
41
32
10
-
20
-
-
0-
4-
64
-
-
15
10
-
90
-
510
-
65
-
99
22
-
-
72
-
34
-
69
92
70
27
-
-
6-
18
50
40
10
1-
40-
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020). Table 1. Results of the Hartigan’s dip test for unimodality/multimodality computed for different distances (variables describing the character of the cultural environment specified by Hofstede et al., 2010: power distance; individualism vs. collectivism; masculinity vs. femininity; uncertainty avoidance; long-term vs. short-term orientation; indulgence vs. restraint, country-level aggregates – Dataset 1) Algorithm for distances computation
D statistics
p-value of the test
Euclidean
0.004213
≈1
Manhattan
0.006851
0.809
Maximum
0.016346
<0.01
Canberra
0.005216
≈1
Minkowski
0.004213
≈1
Pearson
0.006229
0.915
Spearman
0.018891
<0.01
Kendall
0.043269
<0.01
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020; diptest package, Maechler, 2021).
50
Chapter 2
Figure 2. Grouping the countries according to cultural dimensions specified by Hofstede et al. (2010) (power distance; individualism vs. collectivism; masculinity vs. femininity; uncertainty avoidance; long-term vs. short-term orientation; indulgence vs. restraint, country-level aggregates – Dataset 1)37
Individuals - PCA Estonia Latvia
Dim2 (23.9%)
2
0
-2
Lithuania
Czech Rep Korea South Germany Netherlands Italy China Russia Bulgaria Switzerland Sweden Great Britain HungaryBelgiumPakistan Slovak Rep Norway Denmark Luxembourg FranceIndia Croatia Romania USA Canada Vietnam Austria New Zealand Indonesia Finland Spain Poland Bangladesh Ireland Malta Turkey Slovenia Serbia Australia Iran Uruguay Malaysia Argentina Philippines Peru Chile Trinidad and Tobago
cos2 0.75 0.50 0.25
El Salvador Mexico Colombia Venezuela -3
-2
-1
0
Dim1 (31.8%)
1
2
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Figure 3 presents the correlation of cultural dimensions together with the indication of their contribution to the principal component38. Masculinity vs. femininity (mas) and uncertainty avoidance (uai) are minor contributors in comparison with the remaining four cultural dimensions. Indulgence vs. restraint (ivr), the value Here and further, Dim1 and Dim2 denote two leading components. Here and further, the variable’s contribution to the component (contrib) is calculated as the ratio of the squared cosine of the variable multiplied by 100 to the total squared cosine of the component. Following the rule of thumb, the discussion concentrates on the contrib variables with the highest values of the variable (NB: the values of contrib vary across the datasets and cannot be used to assess the relative explanatory power of the variables from different datasets).
37 38
Cultural environment, values, and well-being – a clustering analysis
51
of which denotes the importance attributed to satisfying human desires and hedonism, is negatively correlated with the long-term vs. short-term normative orientation (ltowvs), the value of which denotes the importance attributed to modernization, for instance, in the fields of business and education. Individualism vs. collectivism (idv), the value of which denotes the importance of autonomy (and inverse importance attributed to the sense of social group belonging), and power distance (pdi), the value of which denotes the existing social hierarchy acceptance alongside a degree of tolerance towards power distribution inequality, are negatively correlated (which makes a perfect sense). Figure 3. Correlation of cultural dimensions specified by Hofstede et al. (2010) (power distance; individualism vs. collectivism; masculinity vs. femininity; uncertainty avoidance; long-term vs. short-term orientation; indulgence vs. restraint, country-level aggregates – Dataset 1) together with their contributions to the principal components
Variables - PCA 1.0
ltowvs
Dim2 (23.9%)
0.5
idv
contrib 20 15
0.0
mas -0.5
uai
pdi
10 5
ivr
-1.0 -1.0
-0.5
0.0
Dim1 (31.8%)
0.5
1.0
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
52
Chapter 2
Figure 4 presents the biplot of countries and cultural dimensions. Interestingly, all Asian countries present in the sample (Japan, Singapore, Taiwan, Hong Kong, Vietnam, and China) together with India, Pakistan, Czech Republic, Russia, Lithuania, Slovakia, and Croatia feature a high degree of retrospective normative attribution (which corresponds to the side of the restraint on the indulgence-restraints spectrum). Figure 4. Biplot of countries and cultural dimensions specified by Hofstede et al. (2010) (power distance; individualism vs. collectivism; masculinity vs. femininity; uncertainty avoidance; long-term vs. short-term orientation; indulgence vs. restraint, country-level aggregates – Dataset 1) together with their contributions to the principal components
PCA - Biplot Estonia
2
Dim2 (23.9%)
1
0
-1
-2
-3
ltowvs Latvia Lithuania Czech Rep Korea South Netherlands Germany Russia China idv Italy Switzerland Sweden Bulgaria Great Britain Hungary Belgium Pakistan Slovak Rep Denmark Austria France India Vietnam Romania New Zealand Norway Luxembourg Poland Croatia Spain Bangladesh Finland USA Turkey Indonesia Malta Canada pdi mas Slovenia Serbia Australia Ireland uai Iran Uruguay Malaysia Argentina Peru Chile Trinidad and Tobago ivr El Salvador Mexico Colombia Venezuela -3
-2
-1
0
Dim1 (31.8%)
1
2
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Cultural environment, values, and well-being – a clustering analysis
53
2.3.2.2. WVS indices Figure 5 presents the heatmap of distances when WVS indices constitute the dataset. It is possible to see several clusters along the grid, although Hopkins statistics is well below 0.5, indicating that the dataset is not clusterable. The results of Hartigan’s unimodality dip test computed for WVS and for different distances are presented in Table 2. The results indicate that the null hypothesis about uni-modality can be rejected only for maximum (Chebyshev) distances. In other words, it is possible to cluster the dataset, but only provided that maximum distances are specified (since only maximum distances are not uni-modal). Figure 5. The heatmap of the Euclidean distances computed based on dataset containing variables describing the character of the cultural environment: WVS indices, individual responses – Dataset 2 (n =100; Hopkins statistics ≈ 0.31)
value 5 4 3 2 1 0
24 1304984-114966907--5114740693--838-12155842--11122735--19 112940446--19286-4112281422--1115352-112406765--578-11219063--91011702--113155890--352-13112925--9953--8 116492250--11733071--392-1120617294--11590409--60-115621920--9221-113235-114532645--1396595--94-113261806--1327713--1326-1118463832--016171024--11954454--16 1110853610--11 116632683--1746686--1540-117429799--1773304--11059-1119977895--14817-5114773-11635342--31117518156--11658731--1884-1117776381--17 17784395--111891858--01453067---1469-685-1110197933--91707---8 16686128--1085-11822704--8119550781--711488443--1118248711--1698368--7115161119--7---
167151117118968193186412111818744378154198511801278741028016588668129711019710317698351463947501061111859817889175174173171731888618416115715311576381311316414275571431811771991951075817974133120771495949170461681366316211615810018316614194551147264101140163182332817631271231603691813495651391441551322623251129152606191501942001191046732991721371301916245829093135191235521121593010518109211720165379108126145156371512212184421921281462419619012412571135422851381484370561691479610940342948-
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Proceeding to the principal components analysis, most respondents make a minor contribution to the principal component. It is interesting to mention, nevertheless, that major contributors from the same country are grouped together (see Figure 6).
54
Chapter 2 Table 2. Results of the Hartigan’s dip test for unimodality/multimodality computed for different distances (variables describing the character of the cultural environment: WVS indices, individual responses – Dataset 2)
Algorithm for distances computation
D statistics
p-value of the test
Euclidean
≈0
≈1
Manhattan
≈0
≈1
Maximum
0.05277
<0.01
Canberra
0.00021
<0.01
Minkowski
≈0
≈1
Pearson
≈0
≈1
Kendall
0.00467
<0.01
Spearman
0.00036
<0.01
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020; diptest package, Maechler, 2021). Figure 6. Grouping the respondents according to WVS indices (individual responses – Dataset 2) together with their contributions to the principal components
Individuals - PCA
2
Dim2 (23.1%)
cos2 0
0.75 0.50 0.25
-2
-4
-2
0
Dim1 (30.1%)
2
4
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Cultural environment, values, and well-being – a clustering analysis
55
Figure 7 indicates that two indices being the major contributors to the principal component Y001 and Y003 are weakly correlated. The remaining variables feature a minor contribution to the principal components. Figure 7. Correlation of WVS indices (individual responses – Dataset 2) together with their contributions to the principal components 0.5
Variables - PCA Y003
I_INDEP
Dim2 (23.1%)
0.0
contrib 40
VOICE
30 20 10
-0.5
-1.0
Y001 0.00
0.25
0.50
Dim1 (30.1%)
0.75
1.00
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
56
Chapter 2
2.3.2.3. Dimensions of the cultural environment Figure 8 describes the heatmap of the distances computed for the variables describing the character of the cultural environment based on individual questions. The value of Hopkins statistics indicates the dataset cannot pass the test for non-random distribution, while the results of Hartigan’s dip test (see Table 3) show that maximum and Kendall distances are not unimodal, thus implying clusterable structure of the data. Figure 8. The heatmap of the Euclidean distances computed based on dataset containing variables describing the character of the cultural environment (social values, norms, and stereotypes; social capital, trust, and organizational membership; economic values; perceptions of migration; perceptions of security; index of postmaterialism; perceptions of science and technology; religious values; ethical values; and political culture, interest, and participation, individual responses – Dataset 3) (n=100; Hopkins statistics ≈ 0.46) 169292001401763514310311521524113454138119189773178791604216251511210150135231471391021257578122113107729532194913214437161941931104133104521171481731184625759221371713316811813081931751631808919712910884816611415718817224141271581796187701995526914843195174691981164071641831231115510916752307731498210018115471861776585478374165861062098164192187121156105162918939101881511317011719615951504428466863614613656761911261821411901241214260451311533492671209938128111905853803627663196145194185-
value
6 4 2
18 1149459356-12676-83560-3958111201-3812998-6907-32113534-4615-140121112924-18410-119262-1576114366-666683-24486-5415501-1119196-7715130-18018-18391-11699-02112565-1118917-296410208-16866-587434-7685118757-1576-110814-18420-393707-5 162115097-111251-833-764114110-6698119794-54483-29119556-9870116771-12589-1712744-115882-111674-610884-112989-18897-117630-9513813-111680-38113713-2527-5918627-11741-483-2117-113054-3111940-16943-31114374-492-31929-10725-112137-2778110255-113429-27115335-11100-152-12516426-17790-7938-17113189-15348-15414-11122-14035-331127456-0016290-9--
0
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020). Table 3. Results of the Hartigan’s dip test for unimodality/multimodality computed for different distances (variables describing the character of the cultural environment: social values, norms, and stereotypes; social capital, trust, and organizational membership; economic values; perceptions of migration; perceptions of security; index of postmaterialism; perceptions of science and technology; religious values; ethical values; and political culture, interest, and participation, individual responses – Dataset 3) Algorithm for distances computation
D statistics
p-value of the test
Euclidean
≈0
≈1
Manhattan
≈0
≈1
Cultural environment, values, and well-being – a clustering analysis
Algorithm for distances computation
57
D statistics
p-value of the test
Maximum
0.03677
<0.01
Canberra
≈0
≈1
Minkowski
≈0
≈1
Pearson
≈0
≈1
Kendall
0.00027
<0.01
≈0
≈1
Spearman
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020; diptest package, Maechler, 2021).
Figure 9 indicates that most of the responses make a minor contribution to the principal component. However, analogously to the WVS indices database, the major contributors from the same country tend to be grouped close to each other. Figure 9. Grouping the respondents according to variables describing the character of the cultural environment (social values, norms, and stereotypes; social capital, trust, and organizational membership; economic values; perceptions of migration; perceptions of security; index of postmaterialism; perceptions of science and technology; religious values; ethical values; and po litical culture, interest, and participation, individual responses – Dataset 3) together with their contributions to the principal components
Individuals - PCA
10
Dim2 (8.6%)
cos2
0.8
0
0.6 0.4 0.2
-10
-20
PHL 50812 ECU 17586
NIC 45409 HKG 24401
0 10 20 Source: own elaboration -10 using R-cran (factoextra package, Kassambara and Mundt, 2020). Dim1 (12.8%)
58
Chapter 2
Figure 10 demonstrates the correlation between the variables together with their contributions to the principal components. The variables Q182 (acceptance of homosexuality), Q185 (acceptance of divorce), Q186 (acceptance of sex before marriage), and Q188 (acceptance of euthanasia) are positively correlated with each other and negatively correlated with Q164 (importance of God), Q172 (frequency of praying), Q242 (the degree to which respondents agree that religious authorities should interpret the law) and Q245 (the degree to which respondents agree that the army should take over when the government is incompetent). Figure 10. Correlation of variables describing the character of the cultural environment (social values, norms, and stereotypes; social capital, trust, and organizational membership; economic values; perceptions of migration; perceptions of security; index of postmaterialism; perceptions of science and technology; religious values; ethical values; and political culture, interest, and participation, individual responses – Dataset 3) together with their contributions to the principal components
Variables - PCA Q243 Q249 1.0
Q246 Q250
0.5
Dim2 (8.6%)
Q186 Q185
Q244
Q182 Q188 Q184
0.0
Q195 -0.5
-1.0
Q248
Q162 Q172 Q164
2
Q189
Q245 -1
4
Q190
Q242
-1.5
Q183
6
Q187
Q109
Q171
Q193
contrib
Q177 0
Q178
Dim1 (12.8%)
1
2
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Cultural environment, values, and well-being – a clustering analysis
59
The additional group of highly correlated variables featuring a significant contribution to the principal component includes Q177 (the degree to which the respondents agree that claiming social benefits to which one is not entitled is justifiable), Q178 (the degree to which respondents agree that avoiding a fare on public transport is justifiable), Q179 (the degree to which respondents agree that stealing property is justifiable), Q180 (the degree to which respondents agree that cheating on taxes is justifiable), Q181 (the degree to which respondents agree that accepting a bribe in the course of one’s duties is justifiable), Q189 (the degree to which respondents agree that it is justifiable for a man to beat his wife), Q191 (the degree to which respondents agree that violence against other people is justifiable), Q192 (the degree to which respondents agree that terrorism as a political, ideological or religious means is justifiable), and Q194 (the degree to which respondents agree that political violence is justifiable).
2.3.2.4. Formal institutional environment Figure 11 presents the heatmap of distances for the formal institutional environment dataset. As for each high dimensional dataset previously analysed, Hopkins statistics indicates the random data distribution. However, the results of Hartigan’s dip test (see Table 4) indicate that maximum and Kendall distances are not uni-modal. Figure 11. The heatmap of the Euclidean distances computed based on dataset containing variables describing the subjective perception of the formal institutional environment (social capital, trust, and organizational membership; perceptions of security; perceptions of corruption; political interest and political participation; political culture and political regimes, individual responses – Dataset 4) (n=100; Hopkins statistics ≈ 0.42)
value 5 4 3 2 1 0
11965 14969-547625-5651116886-3118119708-838312633-13150-90115517-992-14118901-1118674-50114523-1113338-13327-111241-909-7887-77370-347-3191119512-13415-978546-94406-13616222-495318949-18919-1116181-063-317118785-301-2201114889-28496-2326-2116561-1119664-57113508-110065-06976-4571-26111834-8726-1148118433-88116746-1115242-03110048-6619-85558-25549-111272-111167-44671-2339-13169-1413820-11625-112801-7517939-112407-6710-135201114225-8542117030-8835-111738-10257-987-1114737-08119999-117735-4217809-115497-744-164114242-69119615-1117316-023-2715115955-462112048-19260-7--
197126200128441561951552710213317619116116512942146474144157179804917217519319910917814739810727115738818517310350142148122251307560121140177937912518011162135821013416923394761114116117127522954555868691011041081231541621741861884313487186112183246415767961001051361501581671941665621126328914618214928203017118538171061131681819118999945316422123640465976841391411551923119343770777887901191241311321371381431521531601841871901149215915197110351206333831981701811816388665165457214519616995-
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
60
Chapter 2
Table 4. Results of the Hartigan’s dip test for unimodality/multimodality computed for different distances (variables describing the subjective perception of formal institutional environment: social capital, trust, and organizational membership; perceptions of security; perceptions of corruption; political interest and political participation; political culture and political regimes, individual responses – Dataset 4) Algorithm for distances computation
D statistics
p-value of the test
Euclidean
≈0
≈1
Manhattan
≈0
≈1
Maximum
0.05089
<0.01
Canberra
≈0
≈1
Minkowski
≈0
≈1
Pearson
≈0
≈1
Kendall
0.00198
<0.01
Spearman
0.00011
0.52
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020; diptest package, Maechler, 2021). Figure 12. Grouping the respondents according to variables describing the character of the formal institutional environment (social capital, trust, and organizational membership; perceptions of security; perceptions of corruption; political interest and political participation; political culture and political regimes, individual responses – Dataset 4) together with their contributions to the principal components Individuals - PCA 5
Dim2 (12.2%)
cos2 0
0.8 0.6 0.4 0.2
-5
AUS 2442 IDN 27137 RUS 54334 PHL 51158 KGZ 35616 IDN 25495 -10
-5
0
Dim1 (23.5%)
5
10
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Cultural environment, values, and well-being – a clustering analysis
61
Figure 13. Correlation of variables describing the character of the formal institutional environment (social capital, trust, and organizational membership; perceptions of security; perceptions of corruption; political interest and political participation; political culture and political regimes, individual responses – Dataset 4) together with their contributions to the principal components
Variables - PCA Q120
2
Dim2 (12.2%)
contrib 20 1
Q112
10
Q148 Q251 0
Q252
-2
-1
Dim1 (23.5%)
0
1
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
As Figure 13 shows, there are four variables characterized by the above-average contribution to the principal component: Q112 (perception of corruption in the country), Q120 (perceived risk of being held accountable for giving or receiving a bribe), Q251 (respondents’ opinion regarding how democratically their countries are governed), and Q252 (satisfaction with the performance of the political system). Q120, Q251, and Q252 are positively correlated.
2.3.2.5. Well-being The variables denoting happiness and well-being constitute the last dataset to be analysed. Figure 14 presents the heatmap of distances. Although it is possible to
62
Chapter 2
detect at least three clusters, Hopkins statistics suggests a random data structure. The results of Hartigan’s dip test (see Table 5) indicate that the dataset is clusterable for each of the distances analysed, except for the Pearson distances. Figure 14. The heatmap of the Euclidean distances computed based on dataset containing variables describing the level of happiness and well-being, individual responses – Dataset 5 (n=100; Hopkins statistics ≈ 0.33) 371397112825125192914711313513916975621151331401451811625331121126167195168123157242216090193118588129158941313198775511057321191531541591461421851471031501721438318719620010051104124144166188615239189683323418592106129156171194141174931761221530486086961021111281611701861901916203849597173747688116117132148151165251056641091771301850665105171145487989951221371381491521641831842712835406672879899108127134197432669788012016317336944107175141807442467084182191101111551366717817919963214534-
value 6 4 2
4324519631-117799-68115367-11051-118911-8724-04426-1847-10110754-447-391117636-2803-7680-2919436-1113274-0987-9898-76762-34205-8211118847-15643-1114329-12378-289759-911548-10147-655-5613180-110770-694-156116205-14515-1113128-1867-877764-713-45399-8120119196-17860-1112610-10181-289666-480-1350-17122-961117443-17941-1115261-0969-248251-3318683-399-6521118681-46110244-125041-00118960-87117433-1110502-18437-1114452-15569-111543-3911572-5019757-1383-15914-8829111581-9816903-2015242-1116273-16985-112276-1531118623-1114415-11303-6752-113695-111359-3947112921-511825-9127-373--
0
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020). Table 5. Results of the Hartigan’s dip test for unimodality/multimodality computed for different distances (variables describing the level of happiness and well-being, individual responses – Dataset 5) Algorithm for distances computation
D statistics
p-value of the test
Euclidean
0.00054
<0.01
Manhattan
0.00061
<0.01
Maximum
0.04511
<0.01
Canberra
0.01182
<0.01
Minkowski
0.00054
<0.01
Pearson
0.00012
0.27
Kendall
0.02153
<0.01
Spearman
0.00405
<0.01
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020; diptest package, Maechler, 2021).
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Figure 15 suggests that individuals are characterized by a better quality of representation in terms of well-being indicators in comparison with the previously analysed datasets (however, such a result might also be constrained by a significantly smaller number of dimensions analysed). Figure 15. Grouping the respondents according to the describing the level of happiness and well-being (individual responses – Dataset 5) together with their contributions to the principal components
Individuals - PCA
4
Dim2 (17.1%)
cos2 0.75
0
0.50 0.25
-4
-8 -10
-5
Dim1 (48.2%)
0
5
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
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Figure 16. Correlation of variables describing the level of happiness and well-being (individual responses – Dataset 5) together with their contributions to the principal components
Variables - PCA Q48
1
Dim2 (17.1%)
contrib 30
Q54 0
Q53
Q51 Q52 Q55
20
Q47
10
Q46 Q56
Q49
-1
Q50 0.0
0.5
1.0
Dim1 (48.2%)
1.5
2.0
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Figure 16 allows the specification of variables characterized by the most significant contribution to the principal component, which are Q48 (freedom of choice and control), Q49 (satisfaction with life), and Q50 (satisfaction with a household’s financial situation). Two latter variables are positively correlated.
2.3.3. Selecting and executing the appropriate algorithm & quality evaluation Saxena et al. (2017) distinguish between two types of clustering, namely, hierarchical and partitional clustering. The essence of the first method lies in designing the clusters through the iterative splitting of the patterns using either the topdown or the bottom-up approach, which are known as agglomerative and divisive
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clustering. The partition clustering does not assume any hierarchical structure of the data, classifying objects to the clusters while optimizing the criterion function. Regardless of the algorithm applied, the objects are decomposed into clusters based on their similarity. There are plenty of methods for identifying the distances between the objects, as mentioned earlier. Therefore, five classical measures (Euclidean, Manhattan, Maximum, Canberra, and Minkowski) measuring the distance between coordinates and three correlation-based distances (Pearson, Kendall, and Spearman) are computed. The study assesses the continuous and quasicontinuous data; therefore, the distances compatible with the binary and mixed data are omitted. Appendix 7 summarizes the formulas in accordance with which the aforementioned distances were calculated. As demonstrated in the previous section, maximum (Chebyshev) and Kendall distances were only non-unimodal distances common for all of the datasets analysed. In order to preserve consistency, the uniform clustering method is used for all of the datasets for as long as possible. Consequently, the choice of the clustering algorithms would be narrowed down to methods compatible and consistent with the Chebyshev and Kendall distances. Appendix 8 presents the results of the preliminary cluster validity analysis computed for the sake of selecting the appropriate clustering algorithm and the optimal number of clusters based on the internal validity and stability measures. Internal validity is assessed based on three indicators: Connectivity, Dunn index, and Silhouette index, while the list of stability measures includes APN, AD, ADM, and FOM. For the dataset provided by Hofstede et al. (2010), nine clusters were computed using the k-means algorithm since it was detected as the optimal one based on the Silhouette statistics (internal validity measure) and FOM (external validity measure). For the rest of the datasets, hierarchical clustering appeared to provide optimal scores in terms of the internal validity measures, while k-means method featured optimal stability scores. Nevertheless, in each case, internal validity results for the k-means algorithm were not significantly different from the hierarchical clustering scores (while the opposite was not true). Therefore, it was decided to conduct the clustering procedure using the k-means algorithm (see additional details in Appendix 8).
2.4. Results and discussion Hofstede et al. (2010) provide the aggregate country-level data. Therefore, the results are presented based on the output of divisive clustering when countries from the same cluster are depicted in the same colour. All the remaining datasets
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consist of micro-level data (individual responses). For each country, the proportion of individuals ending up in the particular cluster is calculated. Then, the dominant cluster (i.e., the cluster with the greatest share of respondents from a particular country) is determined. The cultural map is designed based on the dominant cluster. It should be mentioned that some countries seem to be more homogenous in terms of the cultural environment than others; it means that the majority of respondents tended to concentrate in one cluster, while for other countries, respondents were distributed more uniformly across the clusters. Therefore, the notion of a “dominant cluster” is a bit artificial and should be interpreted together with the distribution of respondents across the clusters. Figure 17 presents the cultural map created based on the data provided by Hofstede et al. (2010). The results are pretty in line with the traditional regional clusters, although not being that cohesive. New Zealand, Canada, and the United States share the same cluster due to the common British colonial past, and Latin American countries are in the same cluster as Spain for pretty similar reasons. Besides, Norway, Finland, and Sweden are also frequently classified as countries sharing the same cultural background, and this study reports similar results. Figure 17. The cultural map of the world according to cultural dimensions specified by Hofstede et al. (2010) (power distance; individualism vs. collectivism; masculinity vs. femininity; uncertainty avoidance; long-term vs. short-term orientation; indulgence vs. restraint, country-level aggregates – Dataset 1)
Note: omitted countries are indicated in grey. Source: own elaboration using R-cran (maps package, Becker et al., 2018).
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Country
Figure 18. Distribution of respondents from different countries across clusters (WVS indices, individual responses – Dataset 2) ZWE VNM USA UKR TWN TUR TUN THA SRB RUS ROU PRI PHL PER PAK NZL NIC NGA MYS MMR MEX MAC KOR KGZ KAZ JPN IRQ IRN IDN HKG GTM GRC ETH ECU DEU CYP COL CHN CHL BRA BOL BGD AUS ARG AND
Country AND
HKG
PAK
ARG
IDN
PER
AUS
IRN
PHL
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IRQ
PRI
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KAZ
RUS
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SRB
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MAC
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CYP
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TUR
DEU
MMR
TWN
ECU
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UKR
ETH
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USA
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GTM
NZL
ZWE
Frequency 0.0 0.1 0.2 0.3 0.4 0.5
1 10111213141516171819 2 20 3 4 5 6 7 8 9
Cluster
Source: own elaboration using R-cran.
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Figure 18 presents the distribution of respondents from different countries across the clusters computed using WVS indices. Earlier, the idea of measuring country-specific cultural environments based on the average values was criticized, and the results obtained support this criticism. There are only several societies where respondents feature a sufficient degree of cultural homogeneity (i.e., where at least 30% of respondents are located within the same cluster): Japan (51% of respondents assigned to the first cluster), China (44% of respondents assigned to the eleventh cluster), Pakistan (42% of respondents assigned to the third cluster), South Korea (39% of respondents assigned to the twentieth cluster), Zimbabwe (37% of respondents assigned to the fifth cluster), New Zealand (36% of respondents assigned to the ninth cluster), Ethiopia (35% of respondents assigned to the fifth cluster), Puerto Rico (31% of respondents assigned to the nineteenth cluster), and Andorra (31% of respondents assigned to the ninth cluster). Alternatively, the degree of cultural homogeneity can be assessed based on the Herfindahl-Hirschman index (HHI)39 values computed for each country based on the proportion of respondents from the particular country assigned to each cluster (see Appendix 9). Usually, the value of HHI above 2500 indicates a highly concentrated market. Using the same threshold value, the list of countries with a significant degree of cultural homogeneity includes Japan (HHI = 3077) solely. Figure 19 presents the cultural map drawn based on the dominant cluster criterion. Perhaps, due to the high degree of cultural heterogeneity in the countries analysed, it is hard to detect any regional cultural clusters, except for the African cluster, consisting of Zimbabwe and Ethiopia (37% and 35% of respondents, respectively, assigned to the fifth cluster) and the cluster constating of the New Zealand and Andorra (36% and 31% of respondents, respectively, assigned to the ninth cluster).
The Herfindahl-Hirschman index is frequently used for measuring the degree of market concentration, being calculated as a sum of squares of each firm’s market share. In the present study, the index assesses the degree of concentration of respondents from a particular country across the Si1 + Si2 + … + Sin , , where HHIi clusters, being calculated according to the following formula: HHI= i stands for the value of the Herfindahl-Hirschman index computed for country i, and Sin stands for the share of respondnets from country i assigned to cluster n (out of the total number of respondents from country i). 39
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Figure 19. The cultural map of the world according to the WVS indices (individual responses – Dataset 2)
Note: omitted countries are indicated in grey. Source: own elaboration using R-cran (maps package, Becker et al., 2018).
The additional attempt to draw the cultural map of the world based on individual responses was performed based on the “raw” data (i.e., more than 170 non-indexed scores describing various normative attitudes, beliefs, and perceptions – see Appendix 3). Figure 20 demonstrates the distribution of respondents from different countries across clusters. The results obtained from the dataset are, in general, more consistent with the notion of national culture since the distribution of respondents from the same country is less uniform. The list of countries with at least 50% of respondents assigned to the same cluster includes Bangladesh (93% of respondents assigned to the tenth cluster), Japan (83% of respondents assigned to the thirteenth cluster), India (80% of respondents assigned to the sixth cluster), Germany (58% of respondents assigned to the sixteenth cluster), South Korea (58% of respondents assigned to the first cluster), and Ethiopia (52% of respondents assigned to the ninth cluster).
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Figure 20. Distribution of respondents from different countries across clusters (variables describing the character of the cultural environment: social values, norms, and stereotypes; social capital, trust, and organizational membership; economic values; perceptions of corruption; perceptions of migration; perceptions of security; index of postmaterialism; perceptions of science and technology; religious values; ethical values; and political culture, interest, and participation, individual responses – Dataset 3) ZWE UKR TWN THA SRB Frequency
RUS ROU
0.00
PRI
0.25
PHL
0.50
PER
0.75
NZL
Country
NIC
AND
KOR
ARG
MEX
BGD
MYS
BOL
NGA
BRA
NIC
CHL
NZL
COL
PER
CYP
PHL
DEU
PRI
ECU
ROU
ETH
ETH
RUS
ECU
GRC
SRB
DEU
GTM
THA
CYP
HKG
TWN
COL
IDN
UKR
CHL
JPN
ZWE
NGA MYS MEX KOR JPN IDN HKG GTM GRC
BRA BOL BGD ARG AND 1 10 11 12 13 14 15 16 17 18 19 2 20 3 4 5 6 7 8 9
Source: own elaboration using R-cran.
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The list of countries where at least 30% of respondents ended up within the same cluster also includes Bolivia (43% of respondents assigned to the fifth cluster), Andorra (37% of respondents assigned to the eighteenth cluster), Ecuador (37% of respondents assigned to the fifth cluster), Greece (36% of respondents assigned to the fourth cluster), and Hong Kong (32% of respondents assigned to the thirteenth cluster). Appendix 10 presents the values of HHI for each country computed based on the clustering output of Dataset 3 (variables describing the character of the cultural environment: social values, norms, and stereotypes; social capital, trust, and organizational membership; economic values; perceptions of migration; perceptions of security; index of postmaterialism; perceptions of science and technology; religious values; ethical values; and political culture, interest, and participation). It is interesting to note that values of HHI also indicate that using the highly dimensional cultural dataset (Dataset 3) instead of the WVS indices provides a higher degree of cultural homogeneity across the countries analysed. According to HHI, the list of countries featuring a significant degree of cultural homogeneity includes Bangladesh (HHI = 8690), Japan (HHI = 7222), India (HHI = 6464), Zimbabwe (HHI = 4515), Germany (HHI = 3826), South Korea (HHI = 3604), New Zealand (HHI = 3400), Ethiopia (HHI = 3239), Philippines (HHI = 2938), and Malaysia (HHI = 2770). Figure 21. The cultural map of the world according to variables describing the character of the cultural environment (social values, norms, and stereotypes; social capital, trust, and organizational membership; economic values; perceptions of migration; perceptions of security; index of postmaterialism; perceptions of science and technology; religious values; ethical values; and political culture, interest, and participation, individual responses – Dataset 3)
Note: omitted countries are indicated in grey. Source: own elaboration using R-cran (maps package, Becker et al., 2018).
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Figure 21 presents the cultural map designed on the basis of the dominant cluster computed based on the more extensive non-indexed dataset. Considering only the countries with a sufficiently high degree of cultural homogeneity, one can distinguish only one regional cluster, namely, Asian cluster, consisting of Japan and Hong Kong (83% and 32% of respondents, respectively, assigned to the thirteenth cluster). Figure 22. Distribution of respondents from different countries across clusters (variables describing the character of the formal institutional environment: social capital, trust, and organizational membership; perceptions of security; perceptions of corruption; political interest and political participation; political culture and political regimes, individual responses – Dataset 4) ZWE VNM USA UKR TWN TUR TUN THA SRB RUS ROU PRI PHL PER PAK NZL NIC NGA MYS MMR MEX MAC KOR KGZ IRN IDN HKG GTM GRC ETH ECU DEU CYP COL CHL BRA BOL BGD AUS ARG
Country ARG
MMR
AUS
MYS
BGD
NGA
BOL
NIC
BRA
NZL
CHL
PAK
COL
PER
CYP
PHL
DEU
PRI
ECU
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SRB
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TUN
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TUR
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TWN
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UKR
KOR
USA
MAC
VNM
MEX
ZWE
Frequency 0.0 0.2 0.4 0.6
1 10 11 12 13 14 15 16 17 18 19 2 20 3 4 5 6 7 8 9
Source: own elaboration using R-cran.
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Figure 22 presents the distribution of respondents from different countries across clusters computed based on variables describing the quality of the formal institutional environment. Using the previously adopted threshold and considering solely the countries, where at least 30% of respondents are assigned to the same cluster, one can distinguish two clusters: Asian cluster, consisting of Vietnam and Myanmar (50% and 31% of respondents, respectively, assigned to the fourth cluster) and the cluster including New Zealand, Germany, and Australia (79%, 69%, and 46% of respondents, respectively, assigned to the fifth cluster). Figure 23. The map of the world according to variables describing the character of the formal institutional environment (social capital, trust, and organizational membership; perceptions of security; perceptions of corruption; political interest and political participation; political culture and political regimes, individual responses – Dataset 4)
Note: omitted countries are indicated in grey. Source: own elaboration using R-cran (maps package, Becker et al., 2018).
Finally, Figure 24 presents the distribution of individuals across different clusters computed based on variables describing the level of well-being. The first thing to notice is that when it comes to well-being, individuals demonstrate a much smaller degree of homogeneity even in comparison with the formal institutional environment quality, featuring a much more uniform distribution across clusters. Taking 20% share as a threshold, one can distinguish between four clusters,
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namely, South Korea, Macao, Greece, Germany, Andorra, and Cyprus (48%, 30%, 28%, 23%, 22%, 21%, and 20% of respondents, respectively, assigned to the seventh cluster); Ecuador and Argentina (28% and 21% of respondents, respectively, assigned to the fifteenth cluster); Peru, Chile, and Mexico (26%, 23%, and 20% of respondents, respectively, assigned to the thirteenth cluster); and Macao and Hong Kong (22% and 21% of respondents, respectively, assigned to third cluster). Interestingly, some of the obtained clusters coincide with the conventional regional map. However, the seventh cluster includes respondents from the countries characterized by the different cultural background, government policy design, and even legal system.
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Figure 24. Distribution of respondents from different countries across clusters (variables describing the level of happiness well-being, individual responses – Dataset 5)
ZWE VNM USA UKR TWN TUR TUN TJK THA SRB RUS ROU PRI PHL PER PAK NZL NIC NGA MYS MMR MEX MAC LBN KOR KGZ KAZ JPN JOR IRQ IRN IDN HKG GTM GRC ETH EGY ECU DEU CYP COL CHN CHL BRA BOL BGD AUS ARG AND
Frequency 0.0 0.1 0.2 0.3 0.4
Country
1 10111213141516171819 2 20 3 4 5 6 7 8 9
Source: own elaboration using R-cran.
AND
IDN
PER
ARG
IRN
PHL
AUS
IRQ
PRI
BGD
JOR
ROU
BOL
JPN
RUS
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EGY
MYS
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ETH
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VNM
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ZWE
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HKG
PAK
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Figure 25. The map of the world according to variables describing the level of happiness and well-being (individual responses – Dataset 5)
Note: omitted countries are indicated in grey. Source: own elaboration using R-cran (maps package, Becker et al., 2018).
2.5. Conclusion The present research attempted to assess the links between cultural environment, formal institutional environment and well-being using clustering analysis. While the majority of studies rely on the country-level analysis based on the aggregate indices, the first attempt was made to assess whether the notion of national cultural environment makes sense, i.e., whether informal institutional environment (i.e., the scope of norms and values shared by individuals) is sufficiently homogenous (i.e., whether the notion of the national cultural environment makes sense). The analysis was performed based on the individual data provided by the WVS, where the prior stage of the classification was assigning a cluster to individual respondents. The principal component analysis conducted prior to the study has demonstrated that Welzel’s autonomy and post-materialism index contributed the most to the principal component yet being weakly correlated. When examining a more extensive dataset (i.e., the dataset consisting of more than 170 variables), the variables characterized by the most significant contribution to the principal component and positively correlated with each other were acceptance of homosexuality, acceptance of divorce, acceptance of sex before marriage, and acceptance
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of euthanasia. The aforementioned variables are negatively correlated with the importance of God, frequency of praying, acceptance of religious authorities interpreting the law, and acceptance of the army taking over when the government is incompetent. The additional group of positively correlated variables included the degree to which the respondents agree that claiming social benefits to which one is not entitled is justifiable, the degree to which respondents agree that avoiding a fare on public transport is justifiable, the degree to which respondents agree that stealing property is justifiable, the degree to which respondents agree that cheating on taxes is justifiable, the degree to which respondents agree that accepting a bribe in the course of one’s duties is justifiable, the degree to which respondents agree that it is justifiable for a man to beat his wife, the degree to which respondents agree that violence against other people is justifiable, the degree to which respondents agree that terrorism as a political, ideological or religious means is justifiable, and the degree to which respondents agree that political violence is justifiable. The quality of the formal institutional environment was assessed based on respondents’ opinions regarding the various aspects of social life reflecting the quality of governance (more than 50 variables in total). The analysis of principal components has demonstrated that perception of corruption in the country, perceived risk to be held accountable for giving or receiving a bribe, respondents’ opinion regarding how democratically their countries are governed, and satisfaction with the performance of a political system are characterized by the greatest contribution to the principal component. The latter three variables are positively correlated. Finally, out of the variables describing respondents’ well-being (12 variables in total), freedom of choice and control, satisfaction with life, and satisfaction with a household’s financial situation contribute the most to the principal component, and two latter variables are positively correlated. It was found out that while some countries are characterized by a high degree of cultural homogeneity (when most of the individuals from a country are located within the same cluster), other countries are relatively heterogeneous (i.e., individuals from these countries tend to be distributed more uniformly across the clusters). For each of the countries, the dominant cluster was identified (i.e., the cluster with the highest share of respondents from the particular country). Considering the aforementioned cultural heterogeneity, the notion of the dominant cluster should be interpreted with cautiousness (obviously, it makes much more sense in the countries with the majority of individuals being located within a single cluster). The cluster analysis computed based on the dataset consisting of WVS indices did not allow for drawing any conclusions about regional cultural clusters since the countries analysed did not feature a sufficient degree of cultural
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homogeneity. In fact, there is only one regional cultural cluster corresponding to the traditional division, namely, the African cluster consisting of Zimbabwe and Ethiopia. Nevertheless, clustering based on a more extensive cultural dataset resulted in a less uniform distribution of respondents from the same country across different clusters. It is interesting to notice (although the result obtained would require a more extensive and careful analysis and interpretation) that countries featuring the highest degree of cultural homogeneity are Asian societies, which are traditionally referred to as more traditionalist (Bangladesh, Japan, Indonesia, South Korea, Philippines, and Malaysia). However, the list of countries featuring a relatively high degree of cultural homogeneity also included Germany, New Zealand, Ethiopia, and Zimbabwe, which implies that Eastern traditionalism and collectivism cannot be taken as a satisfactory explanation. Considering only the countries with a sufficiently high degree of cultural homogeneity, there is only one regional cluster consisting of Hong Kong and Japan. The attempt to classify the countries based on the perceived quality of the formal institutional environment and well-being was less successful. Firstly, countries demonstrated a much smaller extent of homogeneity in terms of formal institutional environment quality and the level of economic well-being in comparison with the cultural environment (i.e., the distribution of respondents across clusters was more uniform in the former cases). Secondly, countries sharing the same clusters based on the quality of formal institutional environment variables were sometimes pretty different from the perspective of the legal system and political regime (which are frequently used as the proxies for the formal institutional environment). The overall conclusion is that countries sharing similar cultural traits did not demonstrate similarity in terms of the formal institutional environment and the level of economic well-being (alternatively, countries sharing the same clusters designed based on the cultural environment variables mostly ended up in the different clusters designed based on the quality of formal institutional environment and the level of economic well-being variables). It shall be admitted that the results were obtained using the WVS Wave 7 dataset which is not complete yet. On the one hand, it allowed for analysing the most up-to-date data; on the other hand, it significantly narrowed down the sample of countries as well as the range of variables. Besides, it is important to keep in mind that the datasets used for the clustering analysis (e.g., cultural dimensions, quality of formal institutional environment, and aspects of economic well-being) did not contain the same number of countries (in other words, the full dataset could provide more consistent results regarding whether sharing similar cultural traits implies similar formal institutional environment and/
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or a similar level of economic well-being). Moreover, it shall be admitted that the analysis of cultural homogeneity (although, to the author’s best knowledge, there has been no attempt to question the appropriateness of country-average cultural dimensions indicators based on the empirical data so far) was a bit naïve. The degree of cultural homogeneity was roughly analysed based on the shares of respondents from a particular country in a single cluster as well as using the Herfindahl-Hirschman index computed for a single country. Further elaborations on the problem of cultural homogeneity might, perhaps, utilize more sophisticated measures. Finally, the conclusions about the links between cultural traits, quality of the formal institutional environment, and economic well-being were drawn based on the concentration of individuals from particular countries in the joint clusters solely. The use of correlation measures would not be valid since, being conducted on the basis of micro-level data, it would not explain the country-level similarities, while the use of aggregate country-level cultural indicators is not appropriate in the light of country-specific cultural environment indicators discussed earlier in the study. Perhaps, to provide clearer conclusions regarding the links between culture, formal institutions, and well-being based on the micro-level data, further studies on the topic might utilize the Fowlkes-Mallows index computed based on several hierarchical clusterings designed using cultural, institutional, and well-being datasets, analogously to the present study. Nevertheless, the present study provided several important implications. Firstly, the study provided some additional criticism towards assessing the character of the cultural environment in the country based on the aggregate indicators (or the idea of the country-specific national environment, in general). For most countries, it would be impossible to detect the respondents who originated in this country since the distribution of respondents across clusters was relatively uniform. Secondly, the study demonstrated (although it was not the primary aim) that certain countries feature a higher degree of cultural homogeneity than others (nevertheless, the results obtained require further verification and interpretation). Finally, although it was possible to detect some regional cultural clusters based on the cluster analysis, it is not possible to draw any links between the character of informal institutions, quality of the institutional environment, and well-being. The results obtained do not imply an absence of links between the aforementioned variables. Alternatively, they demonstrate that multiple outcomes are possible even given a similar set of informal and/or formal institutions might lead to a variety of outcomes.
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Appendices Appendix 1. Country codes (World Values Survey, Wave 7) AND – Andorra MAC – Macao SAR PRC ARG – Argentina MYS – Malaysia AUS – Australia MEX – Mexico BGD – Bangladesh MMR – Myanmar BOL – Bolivia NZL – New Zealand BRA – Brazil NIC – Nicaragua CHL – Chile NGA – Nigeria CHN – China PAK – Pakistan
COL – Colombia PER – Peru CYP – Cyprus PHL – Philippines ECU – Ecuador PRI – Puerto Rico EGY – Egypt ROU – Romania ETH – Ethiopia RUS – Russian Federation DEU – Germany SRB – Serbia GRC – Greece KOR – South Korea GTM – Guatemala TWN – Taiwan ROC HKG – Hong Kong SAR PRC
TJK – Tajikistan IDN – Indonesia THA – Thailand IRN – Iran TUN – Tunisia IRQ – Iraq TUR – Turkey JPN – Japan UKR – Ukraine JOR – Jordan USA – United States KAZ – Kazakhstan VNM – Vietnam KGZ – Kyrgyzstan ZWE - Zimbabwe
Source: The World Values Survey Association, World Values Survey Wave 7 (2017–2020) Variables Report, https://www.worldvaluessurvey.org/WVSDocumentationWV7.jsp (accessed 10.02.2021).
Appendix 2. Variables used for assessing the cultural environment – WVS indices, individual responses (World Values Survey, Wave 7) Variables and description • Post-Materialist index 12-item (Y001) • Autonomy Index (Y003) • Welzel Overall Secular Values (SACSECVAL) • Welzel emancipative values (RESEMAVAL) • Welzel defiance – 1: Inverse respect for authority (I_AUTHORITY) • Welzel defiance – 2: Inverse national pride (I_NATIONALISM) • Welzel defiance – 3: Inverse devoutness (I_DEVOUT)
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Variables and description • Welzel defiance sub-index (DEFIANCE) • Welzel disbelief1: Inverse importance of religion (I_RELIGIMP) • Welzel disbelief2: Inverse religious person (I_RELIGBEL) • Welzel disbelief3: Inverse religious practice (I_RELIGPRAC) • Welzel disbelief sub-index (DISBELIEF) • Welzel relativism – 1: Inverse norm conform1 (I_NORM1) • Welzel relativism – 2: Inverse norm conform2 (I_NORM2) • Welzel relativism – 3: Inverse norm conform3 (I_NORM3) • Welzel relativism (RELATIVISM) • Welzel autonomy – 1: Independence as kid quality (I_INDEP) • Welzel autonomy – 2: Imagination as kid quality (I_IMAGIN) • Emancipative Values – 1: Obedience not kid quality (I_NONOBED) • Welzel Autonomy sub index (AUTONOMY) • Welzel equality – 1: Gender equality: job (I_WOMJOB) • Welzel equality – 2: Gender equality: politics (I_WOMPOL) • Welzel equality – 3: Gender equality: education (I_WOMEDU) • Emancipative Values – 2: Equality sub-index (EQUALITY) • Welzel choice – 1: Homosexuality acceptance (I_HOMOLIB) • Welzel choice – 2: Abortion acceptable (I_ABORTLIB) • Welzel choice – 3: Divorce acceptable (I_DIVORLIB) • Welzel choice subindex (CHOICE) • Welzel voice subindex (VOICE) Source: The World Values Survey Association, World Values Survey Wave 7 (2017–2020) Variables Report, https://www.worldvaluessurvey.org/WVSDocumentationWV7.jsp (accessed 10.06.2021).
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Appendix 3. Variables used for assessing the cultural environment – individual responses (World Values Survey, Wave 7) Sub-dataset
Social values, norms, and stereotypes
Description • Important in life: Family (Q1) • Important in life: Friends (Q2) • Important in life: Leisure time (Q3) • Important in life: Politics (Q4) • Important in life: Work (Q5) • Important in life: Religion (Q6) • Important child qualities: Good manners (Q7) • Important child qualities: Independence (Q8) • Important child qualities: Hard work (Q9) • Important child qualities: Feeling of responsibility (Q10) • Important child qualities: Imagination (Q11) • Important child qualities: Tolerance and respect for other people (Q12) • Important child qualities: Thrift saving money and things (Q13) • Important child qualities: Determination perseverance (Q14) • Important child qualities: Religious faith (Q15) • Important child qualities: Unselfishness (Q16) • Important child qualities: Obedience (Q17) • Neighbors: Drug addicts (Q18) • Neighbors: People of a different race (Q19) • Neighbors: People who have AIDS (Q20) • Neighbors: Immigrants/foreign workers (Q21) • Neighbors: Homosexuals (Q22) • Neighbors: People of a different religion (Q23) • Neighbors: Heavy drinkers (Q24) • Neighbors: Unmarried couples living together (Q25) • Neighbors: People who speak a different language (Q26) • One of main goals in life has been to make my parents proud (Q27) • Pre-school child suffers with working mother (Q28) • Men make better political leaders than women do (Q29) • University is more important for a boy than for a girl (Q30) • Men make better business executives than women do (Q31) • Being a housewife just as fulfilling (Q32)
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Sub-dataset
Description • Jobs scarce: Men should have more right to a job than women (Q33) • Jobs scarce: Employers should give priority to (nation) people than immigrants (Q34) • Problem if women have more income than husband (Q35) • Homosexual couples are as good parents as other couples (Q36) • Duty towards society to have children (Q37) • It is children duty to take care of ill parent (Q38) • People who don´t work turn lazy (Q39) • Work is a duty towards society (Q40) • Work should always come first even if it means less spare time (Q41) • Basic kinds of attitudes concerning society (Q42) • Future changes: Less importance placed on work (Q43) • Future changes: More emphasis on technology (Q44) • Future changes: Greater respect for authority (Q45)
Social capital, trust, and organizational membership
• Most people can be trusted (Q57) • How much you trust: Your family (Q58) • Trust: Your neighborhood (Q59) • Trust: People you know personally (Q60) • Trust: People you meet for the first time (Q61) • Trust: People of another religion (Q62) • Trust: People of another nationality (Q63) • Confidence: Churches (Q64) • Active/Inactive membership: Church or religious organization (Q94) • Active/Inactive membership: sport or recreational organization (Q95) • Active/Inactive membership: art, music, educational organization (Q96) • Active/Inactive membership: Labor union (Q97) • Active/Inactive membership: Political party (Q98) • Active/Inactive membership: Environmental organization (Q99) • Active/Inactive membership: professional organization (Q100) • Active/Inactive membership: charitable/humanitarian organization (Q101) • Active/Inactive membership: consumer organization (Q102)
Appendices
Sub-dataset
91
Description • Active/Inactive membership: Self-help group, mutual aid group (Q103) • Active/Inactive membership: women’s group (Q104) • Active/Inactive membership: other organization (Q105)
Economic values
• Income equality vs larger income differences (Q106) • Private vs state ownership of business (Q107) • Government´s vs individual´s responsibility (Q108) • Competition good or harmful (Q109) • Success: hard work vs luck (Q110) • Protecting environment vs. Economic growth (Q111)
Perceptions of migration
• Impact of immigrants on the development of the country (Q121) • Immigration in your country: Fills useful jobs in the workforce (Q122) • Immigration in your country: Strengthens cultural diversity (Q123) • Immigration in your country: Increases the crime rate (Q124) • Immigration in your country: Gives asylum to political refugees (Q125) • Immigration in your country: Increases the risks of terrorism (Q126) • Immigration in your country: Helps poor people establish new lives (Q127) • Immigration in your country: Increases unemployment (Q128) • Immigration in your country: Leads to social conflict (Q129) • Immigration policy preference (Q130)
Perceptions of security
• Freedom and Equality – Which more important (Q149) • Freedom and security – Which more important (Q150) • Willingness to fight for country (Q151)
Index of post materialism
• Aims of country: first choice (Q152) • Aims of country: second choice (Q153) • Aims of respondent: first choice (Q154) • Aims of respondent: second choice (Q155) • Most important: first choice (Q156) • Most important: second choice (Q157)
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Sub-dataset
Description
Perceptions about science and technology
• Science and technology are making our lives healthier, easier, and more comfortable (Q158) • Because of science and technology, there will be more opportunities for the next generation (Q159) • We depend too much on science and not enough on faith (Q160) • One of the bad effects of science is that it breaks down people’s ideas of right and wrong (Q161) • It is not important for me to know about science in my daily life (Q162) • The world is better off, or worse off, because of science and technology (Q163)
Religious values
• Importance of God (Q164) • Believe in: God (Q165) • Believe in: life after death (Q166) • Believe in: hell (Q167) • Believe in: heaven (Q168) • Whenever science and religion conflict, religion is always right (Q169) • The only acceptable religion is my religion (Q170) • How often do you attend religious services (Q171) • How often to you pray (Q172) • Religious person (Q173) • Meaning of religion: To follow religious norms and ceremonies vs To do good to other people (Q174) • Meaning of religion: To make sense of life after death vs To make sense of life in this world (Q175)
Ethical values
• Degree of agreement: Nowadays one often has trouble deciding which moral rules are the right ones to follow (Q176) • Justifiable: Claiming government benefits to which you are not entitled (Q177) • Justifiable: Avoiding a fare on public transport (Q178) • Justifiable: Stealing property (Q179) • Justifiable: Cheating on taxes (Q180) • Justifiable: Someone accepting a bribe in the course of their duties (Q181) • Justifiable: Homosexuality (Q182) • Justifiable: Prostitution (Q183) • Justifiable: Abortion (Q184) • Justifiable: Divorce (Q185) • Justifiable: Sex before marriage (Q186)
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Sub-dataset
Description • Justifiable: Suicide (Q187) • Justifiable: Euthanasia (Q188) • Justifiable: For a man to beat his wife (Q189) • Justifiable: Parents beating children (Q190) • Justifiable: Violence against other people (Q191) • Justifiable: Terrorism as a political, ideological or religious means (Q192) • Justifiable: Having casual sex (Q193) • Justifiable: Political violence (Q194) • Justifiable: Death penalty (Q195) • Government has the right: Keep people under video surveillance in public areas (Q196) • Government has the right: Monitor all e-mails and any other information exchanged on the Internet (Q197) • Government has the right: Collect information about anyone living in this country without their knowledge (Q198)
Political culture, interest, and participation
• Interest in politics (Q199) • How often discusses political matters with friends (Q200) • Information source: Daily newspaper (Q201) • Information source: TV news (Q202) • Information source: Radio news (Q203) • Information source: Mobile phone (Q204) • Information source: Email (Q205) • Information source: Internet (Q206) • Information source: social media (Facebook, Twitter, etc.) (Q207) • Information source: Talk with friends or colleagues (Q208) • Political action: Signing a petition (Q209) • Political action: joining in boycotts (Q210) • Political action: attending lawful/peaceful demonstrations (Q211) • Political action: joining unofficial strikes (Q212) • Social activism: Donating to a group or campaign (Q213) • Social activism: Contacting a government official (Q214) • Social activism: Encouraging others to take action about political issues (Q215) • Social activism: Encouraging others to vote (Q216) • Political actions online: Searching information about politics and political events (Q217)
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Sub-dataset
Description • Political actions online: Signing an electronic petition (Q218) • Political actions online: Encouraging other people to take any form of political action (Q219) • Political actions online: Organizing political activities, events, protests (Q220) • Vote in elections: local level (Q221) • Vote in elections: National level (Q222) • Political system: Having a strong leader who does not have to bother with parliament and elections (Q235) • Political system: Having experts, not government, make decisions according to what they think is best for the country (Q236) • Political system: Having the army rule (Q237) • Political system: Having a democratic political system (Q238) • Political system: Having a system governed by religious law in which there are no political parties or elections (Q239) • Left-right political scale (Q240) • Democracy: Governments tax the rich and subsidize the poor (Q241) • Democracy: Religious authorities interpret the laws (Q242) • Democracy: People choose their leaders in free elections (Q243) • Democracy: People receive state aid for unemployment (Q244) • Democracy: The army takes over when government is incompetent (Q245) • Democracy: Civil rights protect people’s liberty against oppression (Q246) • Democracy: The state makes people´s incomes equal (Q247) • Democracy: People obey their rulers (Q248) • Democracy: Women have the same rights as men (Q249) • Importance of democracy (Q250)
Source: The World Values Survey Association, World Values Survey Wave 7 (2017–2020) Variables Report, https://www.worldvaluessurvey.org/WVSDocumentationWV7.jsp (accessed 10.06.2021).
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Appendix 4. Variables used for assessing the perceived quality of the formal institutional environment – individual responses (World Values Survey, Wave 7) Sub-dataset
Description
Social capital, trust, and organizational membership
• Confidence: Armed Forces (Q65) • Confidence: The Press (Q66) • Confidence: Television (Q67) • Confidence: The Police (Q68) • Confidence: Justice System/Courts (Q69) • Confidence: The Government (Q70) • Confidence: The Political Parties (Q71) • Confidence: Parliament (Q72) • Confidence: The Civil Services (Q73) • Confidence: Election (Q76)
Perceptions of security
• Secure in neighborhood (Q131) • Frequency in your neighborhood: Robberies (Q132) • Frequency in your neighborhood: Alcohol consumed in the streets (Q133) • Frequency in your neighborhood: Police or military interfere with people’s private life (Q134) • Frequency in your neighborhood: Racist behavior (Q135) • Frequency in your neighborhood: Drug sale in streets (Q136) • Frequency in your neighborhood: Street violence and fights (Q137) • Frequency in your neighborhood: Sexual harassment (Q138) • Things done for reasons of security: Didn’t carry much money (Q139) • Things done for reasons of security: Preferred not to go out at night (Q140) • Things done for reasons of security: Carried a knife, gun or other weapon (Q141) • Worries: Losing my job or not finding a job (Q142) • Worries: Not being able to give one´s children a good education (Q143) • Respondent was victim of a crime during the past year (Q144) • Respondent´s family was victim of a crime during last year (Q145) • Worries: A war involving my country (Q146) • Worries: A terrorist attack (Q147) • Worries: A civil war (Q148)
96
Appendices
Sub-dataset
Description
Perceptions of corruption
• Perceptions of corruption in the country (Q112) • Involved in corruption: State authorities (Q113) • Involved in corruption: Business executives (Q114) • Involved in corruption: Local authorities (Q115) • Involved in corruption: Civil service providers (Q116) • Involved in corruption: Journalists and media (Q117) • Frequency ordinary people pay a bribe, give a gift or do a favor to local officials/service providers in order to get services (Q118) • Degree of agreement: On the whole, women are less corrupt than men (Q119) • Risk to be held accountable for giving or receiving a bribe (Q120)
Political interest and political participation
• How often in country´s elections: Votes are counted fairly (Q224) • How often in country´s elections: Opposition candidates are prevented from running (Q225) • How often in country´s elections: TV news favors the governing party (Q226) • How often in country´s elections: Voters are bribed (Q227) • How often in country´s elections: Journalists provide fair coverage of elections (Q228) • How often in country´s elections: Election officials are fair (Q229) • How often in country´s elections: Rich people buy elections (Q230) • How often in country´s elections: Voters are threatened with violence at the polls (Q231) • How often in country´s elections: Voters are offered a genuine choice in the elections (Q232) • How often in country´s elections: Women have equal opportunities to run the office (Q233)
Political culture and political regimes
• How democratically is this country being governed today (Q251) • Satisfaction with the political system performance (Q252) • Respect for individual human rights nowadays (Q253)
Source: The World Values Survey Association, World Values Survey Wave 7 (2017–2020) Variables Report, https://www.worldvaluessurvey.org/WVSDocumentationWV7.jsp (accessed 10.06.2021).
Appendices
97
Appendix 5. Variables used for assessing well-being – individual responses (World Values Survey, Wave 7) Sub-dataset
Description
Happiness and Wellbeing
• Feeling of happiness (Q46) • State of health (subjective) (Q47) • How much freedom of choice and control (Q48) • Satisfaction with your life (Q49) • Satisfaction with financial situation of household (Q50) • Frequency you/family (last 12 month): Gone without enough food to eat (Q51) • Frequency you/family (last 12 month): Felt unsafe from crime in your own home (Q52) • Frequency you/family (last 12 month): Gone without needed medicine or treatment that you needed (Q53) • Frequency you/family (last 12 month): Gone without a cash income (Q54) • In the last 12 months, how often have you or your family: Gone without a safe shelter over your head (Q55) • Standard of living comparing with your parents (Q56)
Source: The World Values Survey Association, World Values Survey Wave 7 (2017–2020) Variables Report, https://www.worldvaluessurvey.org/WVSDocumentationWV7.jsp (accessed 10.06.2021).
98
Appendices
Appendix 6. Eigenvalues visualization; the proportion of variance explained by each principal component Figure A6.1. Eigenvalues distribution for the cultural dimensions specified by Hofstede et al. (2010) (Dataset 1) Scree plot
Percentage of explained variances
30
20
10
0 1
2
3
4
Dimensions
5
6
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Appendices
99 Figure A6.2. Eigenvalues distribution for the WVS indices (Dataset 2)
Scree plot
Percentage of explained variances
30
20
10
0 1
2
3
4
5
6
Dimensions
7
8
9
10
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
100
Appendices Figure A6.3. Eigenvalues distribution for the variables describing the character of cultural environment (Dataset 3)
Percentage of explained variances
Scree plot
10
5
0 1
2
3
4
5
6
Dimensions
7
8
9
10
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020). Figure A6.4. Eigenvalues distribution for the variables describing the character of formal institutional environment (Dataset 4) Scree plot
Percentage of explained variances
20
15
10
5
0 1
2
3
4
5
6
Dimensions
7
8
9
10
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Appendices
101
Figure A6.5. Eigenvalues distribution for the variables describing well-being (Dataset 5)
Scree plot 50
Percentage of explained variances
40
30
20
10
0 1
2
3
4
5
6
Dimensions
7
8
9
10
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
102
Appendices
Appendix 7. Summary on the distance measures used in the study Distance Euclidean
Formula n dEuclidean = ∑ xi − y i i =1
Manhattan
n
∑x
dManhattan =
i
m
1 2
− yi
i =1
Chebyshev (maximum)
dChebyshev = max xi − y i
Canberra
xi − y i
n
dCanberra = ∑
i =1 ( x i + y i )
Minkowski
n dMinkowski = ∑ xi − y i i =1
Pearson dPearson =
∑ ∑
m
( xi − µ x )( y i − µ y )
i =1
∑
n 2 i x =i 1= i 1
Kendall
n
n
1
m
(x − µ )
dKendall = 1 −
( y i − µ y )2
nc − nd 1 n( n − 1) 2
Where nc stands for the number of concordant pairs; nd stands for the number of discordant pairs; n stands for the total number of observations. Spearman
∑ ( x′ − x′)( y ′ − y ′) n
dSperman = 1 −
i =1
i
i
∑ ( x′ − x′ ) ∑ ( y ′ − y ′ ) n
2
n
i =i 1= i 1
2
i
Where x’i stands for the rank of xi and y’i stands for the rank of yi
Appendices
103
Appendix 8. Cluster validity Table 8A.1. Cluster validation indicators for the cultural dimensions specified by Hofstede et al. (2010) (Dataset 1) Score
Method
Clusters
Connectivity
3.0540
Hierarchical
2
Dunn
0.4596
Hierarchical
2
Silhouette
0.3163
K-means
9
APN
0.0448
Hierarchical
2
AD
37.9639
K-means
10
ADM
3.6065
Hierarchical
2
FOM
17.8111
K-means
9
Criterion: internal
Criterion: stability
Source: own elaboration using R-cran (clValid package, Brock et al., 2020).
104
Appendices
Figure 8A.1. K-means clusters for the cultural dimensions specified by Hofstede et al. (2010) (Dataset 1)
KMEANS Clustering 33 59 58 2
37 69 9240
Dim2 (23.9%)
27 0
70 101 50 6
93
72 7 34 18
56 21
26 52 43 44 11 54 96 85 46 35 106
60
16 73 86
2447
90
77
9
100 87 1568 9841 78 7662
64 48
104 20
4
81
80 84
75
cluster
a
1
a
2
a
3
a
4
a
5
a
6
a
7
a
8
a
9
99
-2
32 65 22 105 -3
-2
-1
0
Dim1 (31.8%)
1
2
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020). Table 8A.2. Cluster validation indicators for the WVS indices (Dataset 2) Score
Method
Clusters
486.9111
Hierarchical
2
Dunn
0.1680
Hierarchical
2
Silhouette
0.1893
Hierarchical
2
Criterion: internal Connectivity
Appendices
105
Score
Method
Clusters
APN
0.0409
Hierarchical
2
AD
5.7064
K-means
20
ADM
0.2007
K-means
2
FOM
0.8043
K-means
20
Criterion: stability
Source: own elaboration using R-cran (clValid package, Brock et al., 2020). Figure 8A.2. K-means clusters for the WVS indices (Dataset 2)
KMEANS Clustering
Dim2 (12.3%)
2.5
0.0
-2.5
-5.0
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34361 9354 46041 46298 28193 24515 42690 6991 66371 4192 6850 27502 64492 69080 10479 23883 10444 35620 17844 20112 40519 42061 1494 63486 60655 56574 51108 54564 59919 41422 41963 8254 11487 7716 7064 2629 45928 40930 62894 69626 56693 4458 26048 15545 46582 70859 15641 66771 34618 7518 66054 35101 12645 9959 32294 4523 38760 35516 27881 69436 66438 8361 27456 41048 8429 70108 25167 61222 26446 46547 43839 21402 40715 48763 38464 45939 49759 41185 61521 27766 19578 16760 24500 54976 52711 53810 58407 69506 27364 25391 2704 35720 13622 13030 70686 15948 47411 68847 16819 1951 28169 5851 49041 5206 49953 49627 58171 34325 22213 61574 16491 35080 11238 4330 12793 41503 33697 36582 64460 1445 47462 20261 1571 13900 53923 4506 66762 12494 13764 3362 63229 41416 54006 49716 62557 60743 21178 9463 25687 65899 54741 35245 19582 63061 38777 56727 46029 4230 3788 63767 43564 21475 62061 33781 43620 14874 56236 65383 36911 55327 6899 68037 42207 30159 23249 64339 54166 67652 25618 21668 66925 20240 68704 2262 61035 69740 14579 52261 47503 25509 10829 41626 34983 50754 49733 25658 8765 10748 55161 3332 13908 23078 66349 11492 10856 8615 49226 60945 11144 25681 13042 60538 44130 5623 41550 67771 46097 50496 66650 29200 14428 24212 11995 2292 19942 58512 47271 68219 4392 70553 49908 56698 40061 9906 17049 44145 19570 17583 10903 7460 47351 12076 13430 67691 69930 41246 29326 26626 12156 69927 14153 47254 2038 10839 61013 22450 3290 55312 61594 18034 32214 25190 49697 35235 7007 17193 29044 11075 25314 13330 30550 27810 42679 15467 41677 38963 30527 30457 6804 50858 45669 2925 1989 11658 28616 30867 48414 52103 5535 28386 6035 51809 67906 4505 64095 5343 5059 68821 70459 36809 49323 58127 39031 35033 9535 36594 3320 23721 35079 42256 35862 17255 64182 21304 20618 61650 25621 58252 41296 65299 12388 44762 49657 11218 64167 540 7157 2082 62721 61747 48601 41645 63544 1602 11908 49877 34639 17329 34446 28397 13567 70678 49688 19364 36517 12155 39641 9432 12160 36998 40998 10358 10231 35247 25743 47262 35122 30786 50461 50415 26860 41757 10814 40961 36489 5805 48099 44894 25181 42429 14024 68629 6736 28017 6646 42876 38782 26636 48210 10116 14885 13904 64570 20262 20092 17718 60385 33740 12520 43265 40040 16979 49477 64293 27198 50794 56558 50024 55001 66628 64320 27281 5640 49343 29050 1247 20785 23364 66189 43545 4931 13153 14566 8796 1284 48273 5629 45680 58481 50525 57940 10451 4407 2100 21088 44618 56710 41902 30784 10630 3284 37167 12607 6727 24809 42611 39631 62856 11262 18127 12329 68307 47436 34076 63471 11328 13458 35544 25622 67588 14865 63535 40549 30899 10295 10245 51094 2087 17878 60267 20341 63792 12683 28680 14338 47288 3356 41916 47633 44150 45392 36806 29030 40678 55953 37082 56538 33741 41451 36418 64281 26600 28658 27879 65961 49383 5826 40670 28915 28484 12684 4234 7243 26557 47219 70366 62608 43932 34873 60452 1089 67025 59871 60432 19863 48042 57157 19709 20105 63675 35845 64399 43096 44675 39580 63479 8943 39520 23682 13693 5837 41313 49440 67932 32145 34952 47875 22624 30481 8094 25309 26811 42523 62726 8212 34694 24604 60921 6279 25229 28748 35602 41029 17798 21115 12358 27210 49663 44164 49368 14052 62039 25132 14092 13787 67853 45251 24771 50846 64435 45671 57249 3430 2760 7306 19464 44563 9104 16403 35822 29747 41998 21313 42417 37172 67426 6897 70146 25211 9913 4055 60604 47405 50975 47963 45818 41405 62474 48182 44787 12664 26823 63927 14651 59890 25558 53249 66265 63904 56891 68957 34896 11884 44730 35243 35993 69504 44782 67786 61658 38756 27656 4654 30812 28358 29400 45881 4059 12634 45458 38822 63704 27528 42762 19384 67181 24308 1393 68202 28226 25383 26777 36865 70215 10261 48475 67425 24907 50928 35598 48208 12051 26153 13942 68991 26659 5720 67552 5387 35818 70077 50448 60117 35273 26379 50585 26625 41037 44843 34848 17027 57446 60910 39518 33499 62736 27690 56586 44702 36924 40623 70528 3941 64216 21455 3059 27123 20021 57333 49216 861 70550 69374 60549 44708 27923 5948 32571 51577 25654 41235 54483 39103 35776 57684 68246 26910 49113 42730 20441 24425 24279 23376 4220 45343 11103 40790 19921 35451 56035 61368 11131 68461 35692 18045 7069 12610 35093 17408 21597 45536 28624 52747 28138 24296 15501 2840 43498 12697 25348 4482 5451 68699 63676 49258 68505 13168 69434 3920 39325 44764 50906 14354 67019 28217 69929 57361 49166 51886 44113 47864 47945 44450 6201 42139 2751 67354 63268 63635 66879 3311 47260 29389 26903 44240 27193 39624 27806 1564 48509 19856 41656 69383 11915 19960 19920 28498 12023 56090 12542 67083 43972 10625 63497 41808 33520 34658 34093 33557 64506 10306 51039 53018 4880 5819 59983 30686 35387 44868 22440 4004 19911 7913 35317 60747 37118 47529 48672 26666 51993 53483 48283 5005 26565 64066 43098 70238 47346 18049 35400 42485 63925 48557 50840 12389 21060 69459 63796 28869 39756 48379 35414 54818 11936 5929 34809 25289 58408 28178 1625 10385 68974 15747 50607 35797 27712 36478 10853 67584 39709 41869 57478 53981 44491 62222 12211 35886 30054 41212 60808 48234 43297 5236 70667 48047 36000 51751 26089 64905 36749 24879 50493 29366 41328 47463 43249 39726 15489 30160 35263 35120 41303 39796 42069 47310 36196 42315 63905 11115 43683 70775 25673 51240 33835 66853 28124 67331 29662 60969 29317 54306 28579 26655 66871 49173 70864 2514 41243 41941 17560 57751 59867 62071 39614 8628 25213 48349 47305 42000 64154 21017 26398 27742 15941 69437 6397 25159 35428 1461 12132 27030 36097 63878 57969 24890 37058 63269 45264 62760 42361 41334 4409 40360 44415 41284 17465 24147 61063 39683 28155 10668 44821 70073 67736 26981 8739 58168 53718 40187 5392 48077 43638 26761 57010 5918 61518 23962 63701 41403 1654 63423 44817 14620 50314 21342 47779 51901 64655 30430 41182 7990 40028 13498 34549 26209 44994 27995 47283 66155 67966 49109 69175 45086 9724 45257 45417 47467 64411 17275 40081 10517 7006 41918 50182 35583 2557 46234 68087 42097 41455 6216 23060 4827 4443 23400 16237 48301 53333 62415 48436 41306 53246 34769 41047 69546 201 16892 28453 61381 2698 17556 50506 3886 3537 53147 16857 12091 60351 35702 41224 45007 34664 51176 27864 42083 35214 35933 28234 14124 2842 28388 47460 41938 21319 65083 34654 10880 25861 54314 60124 50893 60641 34804 62677 36250 28009 10211 48399 45433 17358 70174 35585 48583 42063 27028 62187 48155 17506 28770 66103 45176 42283 11613 36939 43011 4447 44692 53456 41964 66420 63705 8130 62628 16731 47937 17118 64088 66193 68150 41393 63839 27196 25307 64502 45419 35842 21334 54860 35550 35183 22591 15423 56783 5233 60622 66405 36581 4522 35666 35431 50230 18040 41086 61538 42379 27279 3145 44517 2469 3535 12931 60134 27119 41456 5134 1567 49422 45067 21131 42010 35907 26740 53615 44848 47412 7161 5414 50262 40196 48168 34802 52935 34858 49178 25079 24061 25062 42816 23026 60246 6787 26516 47096 57235 29458 56388 36157 8711 53861 27342 17869 39719 27795 63646 36698 5377 47924 68717 44356 27305 32487 55926 35181 49263 1439 21931 64591 65120 30529 35714 68817 41070 36511 41567 3528 48493 41787 12068 69673 41822 40996 39896 26318 19591 64665 13370 55800 62581 33846 44251 65456 49405 67964 47299 24974 2175 47865 40023 56870 61908 13280 42204 36395 4184 23546 11145 12624 51670 40784 26808 27524 3213 46309 50851 41599 36242 3974 20917 68067 60571 18066 11524 54038 48460 27751 58244 46025 56488 66387 60930 27362 29821 6522 35016 55824 24793 27118 20596 25420 45501 3091 56539 13810 4911 25991 66421 29020 40014 29536 40282 44464 34937 30838 2982 25425 63367 3860 10567 33948 6275 20454 61321 63747 47734 3797 46226 13346 26866 37139 38857 60855 40854 26856 55560 28052 48386 48487 29382 8779 27629 41276 14053 42235 48095 40990 34458 66085 54114 23692 40985 51336 23948 38622 41381 41108 29442 66644 66161 60532 50195 8901 10366 9038 47856 29949 47291 2560 32187 30405 67955 7279 40911 68841 35745 66015 27611 5315 65285 24600 67355 66068 36114 11836 3481 7117 46224 45583 27045 29615 48953 26000 8750 65470 45817 43127 54139 13516 29376 29579 39553 27593 39382 23957 29205 35068 61065 51166 54518 18093 5668 66791 47736 40191 54309 46387 7299 48289 46038 66256 48164 36994 55680 9267 28872 10242 50072 42505 66446 24011 29398 11370 65219 60230 39640 34507 57498 35753 4616 29266 6628 36908 5758 64403 21317 56542 64128 1884 11336 11118 47894 62216 34208 23241 64377 58421 56526 39914 8594 16758 67653 60776 41286 40411 29337 17884 7504 47838 63397 24632 2969 45952 58392 43515 50792 28829 25942 24694 43393 47269 54324 29530 48087 50066 70312 41695 25484 62849 41640 2779 41632 20788 42738 44479 4157 57697 22876 36730 5159 1167 63527 2948 24651 47437 59948 29179 68552 2456 47846 14186 27017 29782 60427 50956 39795 5908 65275 13450 6642 6390 67640 67183 10102 40458 50259 39844 36631 35557 35266 17378 44466 7730 14243 40841 55390 59780 67113 69241 67638 22253 25347 19356 65924 6701 30748 34626 5197 40927 44775 6302 34934 33608 28238 39508 34028 54390 67912 28737 46086 12274 61761 44256 27288 27915 47874 36389 42473 64034 5574 13922 66627 6133 35240 11750 67727 37061 27998 21777 3343 7342 48697 26348 17226 64378 60254 43963 4558 11993 56876 16966 56276 24103 3586 25998 42007 27574 41513 19678 3631 39767 66753 26485 36159 25054 14574 1196 2956 5811 39000 60319 4525 67911 43460 42017 60502 38510 13705 20666 29560 24218 64042 23634 50331 54457 4848 42177 36471 10608 14030 7788 42728 2750 23807 67562 4548 36970 60381 54872 70407 46007 54760 49285 5538 51931 54767 44357 26922 48622 42295 66235 68922 39600 35727 13136 67701 26364 67416 36134 23956 28731 45292 26359 4973 68637 68838 55083 9754 50954 49357 42499 41497 21740 50482 44078 1492 50112 67170 41492 50677 14535 23122 45188 62807 65554 45462 42416 29581 30939 12550 70484 16860 12971 25455 1698 47942 21437 41565 53482 24957 26320 69012 44865 54762 22785 28058 67127 29453 39748 4842 27646 6700 55626 69928 44579 50309 24193 41971 40501 2204 35934 9343 24753 25881 56061 14134 18016 67482 29250 35815 66125 5744 35062 36176 35654 64159 54413 25224 1249 28575 56665 23771 25469 22049 56490 1197 40440 54247 2694 7719 44768 60780 6730 56669 59893 29514 66916 16947 42117 49715 62821 9318 49931 8991 36416 40537 24955 47908 43834 41585 6836 64212 12993 26593 53735 27140 17487 64499 1573 42985 25440 56763 26038 51632 60260 6824767960 26515 28987 17613 14421 1521 70106 43057 5099 66221 60919 26920 4891 55365 51533 11237 54294 70650 52824 57657 24901 3958 55564 17102 50679 5778846378 14147 65186 16011 17790 50626 45211 65114 24379 45973 65301 10338 26787 40664 21276 41239 43362 27999 35499 28470 28098 26773 4298 65457 37042 54223 51771 20784 29332 35225 40545 17165 26888 35156 26091 2332 49190 56277 40682 14169 6063 51486 5647 51587 5142 7092 33553 36867 57702 48605 36713 41927 13854 55550 69449 69062 12184 40365 1026 44729 20693 50779 56954 36752 11554 61847 40332 67968 68668 45416 14741 3930 25048 28599 18047 57302 68834 49382 44058 5395 4805 56515 67527 66041 64873 64701 1402 39991 10139 49525 64842 69289 6616 5087 55175 6389 29165 16344 24464 44551 24125 40322 68662 27967 55738 66702 65328 4339 40031 24842 4093 42281 65454 4895 47000 42133 13465 5287 6789 38598 66805 2398 17541 55774 43189 17336 53867 33678 42467 54408 40900 29342 51416 51555 60513 45858 20766 1188 65037 3859 45163 63755 5086 26789 67901 12606 11555 60843 44705 54450 24628 54825 41985 26471 16948 8477 48397 29473 10267 67903 62727 45775 396 69247 51424 56478 24666 57784 38687 55062 51052 26393 44033 27642 14716 17655 26377 50892 22377 51686 29388 4248 36960 13688 5146 12539 25427 48472 34047 8848 54660 69027 1533 40015 24318 22992 62658 50982 51054 51529 29343 29329 47730 30473 51419 57730 55979 40593 63966 40228 38519 64796 24823 12742 24792 60758 55922 61969 63633 51773 1505 68004 11047 14817 38570 65481 49723 61315 19460 67371 29595 67415 57846 50720 25044 18001 69440 27088 56508 40970 60440 51310 27074 51776 21279 43583 50791 68519 24860 51589 28653 44812 33865 68570 5269 51026 57602 43938 6768 69501 49345 43198 35399 29863 25925 33554 70333 56504 12864 59912 66749 43669 16081 50556 12165 55184 6203 68070 43487 25057 3288 27230 42839 21066 55806 2553 24896 32557 44039 41061 51335 13292 68511 39994 8724 50100 11615 34008 47188 27780 42011 13592 28799 53862 66886 27805 3891 5193 49284 45566 10914 17374 51216 41163 67712 69093 36226 41579 49354 24582 43920 68108 39473 51598 11627 6858 66525 67767 37154 40132 25113 3713 39846 63058 17356 45322 4871 13907 46127 50429 64871 24452 60798 36302 11760 20227 57460 35162 59764 4789 10459 28270 25433 40509 55698 45445 70773 48286 6567 33494 24265 2280 4817 51302 35789 36142 11725 48529 54447 5794 57632 13905 5556 16990 69685 66391 51009 43031 1342 10817 42946 55306 22639 34744 47841 39737 39834 36984 55199 51394 43123 34498 42192 43988 67045 55633 36305 18077 13438 66833 56176 43469 36158 67281 50853 23307 41628 6981 26680 6573 68975 39819 50035 66076 43089 17491 55959 39154 48867 37199 60738 27133 15592 21429 41723 4021 66657 39729 38433 24372 23502 26419 43350 29790 50980 56167 54685 24089 51143 55344 64747 29682 56351 41731 35930 30344 3602 57637 69957 48127 40344 29849 48466 13106 68667 50971 42864 39570 54724 40104 13291 17423 27977 50835 42230 43274 39309 27884 40170 38721 30348 21284 11040 36359 65774 13704 42667 29248 26168 26743 24094 33867 66416 39885 68518 28064 56100 24655 70504 51075 28997 34892 50867 69273 44515 68697 50634 39198 26034 4844 39030 11470 33750 63948 69083 12327 4076 13117 43979 63855 51657 43521 54201 64777 24427 23139 26619 13113 9635 23533 27165 57283 12419 57894 42227 39343 9513 33618 56989 17100 27351 17401 4694 68797 57540 9238 23832 66211 36192 51775 5539 40018 66062 51602 36193 13100 63412 49981 43132 24668 39353 14567 35268 43978 12596 51337 68670 45243 9510 17258 56682 50854 68107 45405 54579 67635 42836 28753 33708 36950 35065 54790 36062 36411 62141 47544 39053 16019 68858 10767 38475 7066 38578 69536 5376 24552 28574 68700 51038 64117 43257 5993 44664 1744 44745 69511 25473 34542 26670 51185 24088 57380 50760 62196 66949 66084 43339 27262 30438 2883 26198 51328 15760 39367 23062 23954 57516 30290 68625 35220 34543 35230 51104 40463 54524 47987 65656 49684 67167 3929 42634 41756 23488 61754 51147 29503 25521 69581 36223 39862 38741 9395 40275 13480 51498 36588 11963 48784 34041 27356 58212 8988 69165 36679 27604 41853 39964 56094 4317 26095 42337 11941 68609 51442 25027 1064 58411 13454 30723 30632 27585 47723 25117 36536 60366 63760 42832 55319 57434 63357 28933 24211 26356 29238 24921 64761 29157 24502 43618 34663 36733 66122 44696 57477 44258 54690 69213 23908 1366 49681 25860 24803 42528 29643 66149 43174 33719 43703 48856 30716 63869 43207 9367 50695 61866 69319 69089 48905 42588 22348 40351 9701 61218 4242 38944 47354 38725 57598 43228 51066 36787 66208 24696 63894 28267 45115 51019 48054 47956 65809 28713 43128 54487 50883 33810 69505 39015 43291 43652 28629 43596 9676 13726 24523 69087 9120 57647 48120 36085 55307 43835 33667 65181 39399 61777 36351 29110 45303 64781 23723 42886 57610 41696 49769 28656 43957 4695 29405 34193 51200 29449 13199 23121 39347 68690 8973 38472 11634 18073 33675 30768 42440 42324 41316 24873 62013 17937 51005 54992 4934 43451 51715 25434 42823 36866 14087 65620 44697 22390 70243 62621 67793 36244 26916 42714 51730 36149 43486 50717 54900 45672 43053 30486 27997 33679 57868 41219 54069 51569 30664 34158 28727 29140 30745 56937 28391 1910 53222 29749 22984 43388 24297 34284 68789 24528 46028 50557 51561 36724 5750 26001 34351 37112 58374 54819 44678 36444 39476 37034 43403 36629 59980 60577 27578 34335 24383 4446 12349 44650 30465 42755 36975 25834 62454 63654 55020 14230 36075 51470 49491 44059 24277 46251 2349 4719 69572 41612 4684 57787 64028 46008 4578 25393 62185 57790 21804 39823 1915 43383 8550 43641 43161 42508 27757 61295 6069 55032 51359 60215 70487 40797 51595 45617 24001 57656 39372 48785 17164 43356 24572 65185 29209 42382 24519 50727 55276 36670 57804 4516 35561 47211 21212 30722 26595 69696 38517 64227 65548 50857 7924 45503 34371 25450 28437 34955 27202 43543 30283 42325 66017 35311 36562 25256 61875 5907 12486 60927 54837 36475 11625 54602 1889 35812 24859 62879 44503 1909 28919 20192 63697 36232 43294 39350 57923 12714 35631 11292 36873 57896 38943 12732 53229 36634 44929 39351 30488 34718 51361 69176 42392 26120 68796 4521 38904 36435 30665 36248 40390 47295 24785 42771 28834 26627 37067 42664 42955 34127 64205 48057 19483 48059 51382 1892 42185 4360 41360 9596 30684 47550 47553 29810 68211 48873 51249 30698 42597 54932 18060 61236 42125 36777 24656 1920 43585 36483 57457 44833 39357 51152 23599 39247 68669 44513 41830 68579 36491 36598 27401 54954 51223 20118 25972 69627 36334 10588 26496 36425 66039 9071 44668 57874 68937 62432 68531 30653 24486 64697 13699 40325 5073 30102 68954 36584 42587 60498 33729 9198 6517 41620 17126 42217 66825 28650 40096 63959 23593 27361 69343 70252 44540 64625 11101 36304 44012 4370 36898 10711 36096 4677 3529825456 29267 30693 36379 23460 58441 69406 30843 68528 40852 54119 26989 20190 25600 29349 26072 51390 43184 44685 42238 36677 65061 67778 24810 68989 42776 51063 54462 11779 10586 30451 24778 69548 3895 29055 51763 61902 43612 24191 50651 64081 22065 70409 4352 36377 37189 33994 51687 30415 58423 53419 22883 43047 34171 61121 51226 36841 30710 21206 9553 65473 10284 36656 55176 43871 4513 54599 35299 69081 42455 28316 42708 27871 37192 36633 37106 41815 -10
-5
0
Dim1 (26.4%)
cluster
a
1
a
2
a
3
a
4
a
5
a
6
a
7
a
8
a
9
a
10
a
11
a
12
a
13
a
14
a
15
a
16
a
17
a
18
a
19
a
20
5
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
106
Appendices Table 8A.3. Cluster validation indicators for the variables indicating the character of cultural environment (Dataset 3) Score
Method
Clusters
Criterion: internal Connectivity
2.9290
Hierarchical
2
Dunn
0.6257
Hierarchical
2
Silhouette
0.2348
Hierarchical
2
Criterion: stability APN
0.0004
Hierarchical
2
AD
16.8130
K-means
18
ADM
0.0105
Hierarchical
2
FOM
0.9242
K-means
20
Source: own elaboration using R-cran (clValid package, Brock et al., 2020).
Appendices
107 Figure 8A.3. K-means clusters for the variables indicating the character of cultural environment (Dataset 3)
KMEANS Clustering 20
24401
cluster
15
Dim2 (5%)
10
5
0
-5
9549 18001 19858 70240 24297 24778 24707 19494 43374 43232 19986 50890 70654 40371 51037 22654 43568 43408 20104 43317 43618 45409 51292 40278 43367 14125 24877 24688 44158 70147 45188 19819 5318 45398 19911 24575 51516 43319 24913 19335 50527 56785 21907 24026 42872 39829 42828 43397 5099 43031 42904 24802 40197 70276 56418 40275 51557 42834 43492 20106 44059 24412 42827 19758 22696 43161 19756 43053 70402 43196 56852 36262 43063 57859 20228 43134 45121 19987 39850 43325 55628 43267 9554 24010 26113 39504 43078 43302 51761 70475 24250 13889 43786 45454 43286 26399 50920 36047 50996 51580 43050 40239 42887 43678 43081 24296 43187 43057 43606 65583 40995 43533 43228 24870 57904 46043 51571 57601 51485 43612 43000 36312 24200 43497 50997 13251 24096 57822 43509 43106 6260 57711 43503 57434 57876 24388 43471 16953 1750 42858 39855 36516 43162 70272 24188 55714 51488 57523 56861 43554 17420 36325 50657 70646 56475 56485 51237 50985 43622 5691424868 56856 57604 5157951502 13611 24665 44225 43278 56417 44605 24751 24211 24112 70813 24943 42829 39524 43273 24331 43337 17519 51008 40466 50733 44230 57907 43220 24919 24293 24418 50655 51529 36054 24128 24336 8661 45164 39599 56725 4406517413 43208 42823 70106 51053 26034 43080 24686 24231 55556 43613 43398 50673 56913 52889 50937 24794 43276 43834 39851 6192 36224 43360 56499 5648 43542 43170 51726 45784 51678 5479 17036 51780 43222 51559 9057 24501 65555 16758 40304 24001 17946 50668 6535 50796 24317 42944 57900 57838 28060 19497 50946 50603 24220 40425 43058 51345 56353 51569 43284 42900 40159 70855 39757 45251 40917 43939 27865 17790 43498 24582 39508 44509 9846 43186 43179 39871 39736 45395 51633 25014 51981 70203 19419 17306 1772640376 40734 54260 43329 3837 24845 18045 56508 50755 43285 42817 24149 51443 43482 56496 51317 57394 43668 42448 37052 64229 45113 17576 28042 24234 70431 23022 36069 51535 57537 70435 42863 24291 57540 50812 57630 50230 5357 43339 19396 51729 43135 8059 56478 57911 24436 43627 56471 50648 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57686 55681 39822 51775 43661 53225 24411 43015 40735 51599 51468 24161 43655 7918 40950 43653 51326 8147 50773 36063 24286 43132 36521 42868 43851 43869 43396 13729 24174 36555 24333 17913 40219 36187 64041 8210 51716 51538 24243 56503 55826 26240 44417 41061 51435 42914 37136 57471 43261 51270 27397 24347 14169 22041 17491 43322 43507 50843 17525 56416 43182 28124 13077 24515 50653 70853 22415 56846 57745 43567 24242 51613 57757 51366 57461 42875 51679 54757 70122 57467 55715 50509 24443 13546 51453 26490 24808 57515 43111 36093 43347 52714 51651 43128 24854 18052 43046 40831 50984 57525 16994 17090 43151 6836 55772 51674 63473 46007 5701 42802 43626 25054 57774 43019 55411 57468 43108 24890 22555 42786 16990 69683 40628 57713 69953 43308 43406 39890 53252 45263 17909 24503 54825 24989 63347 24901 24235 55705 6925 42804 50804 6085 46311 39443 39861 17920 58379 24822 51659 19547 13106 42964 5375 42915 43245 25024 16783 24780 25346 63710 39673 9311 16938 24109 43193 51373 50940 44503 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53522 40267 21386 53561 40145 23833 23259 21311 55837 63514 40743 63849 40982 236 52886 57210 64281 58196 21168 4200 17256 70743 70618 17376 52544 36446 40851 26834 24983 39483 25481 63591 53348 536 63842 23898 7490 357 5748 37000 56247 14409 50303 69690 1629263538 16394 4059 56124 20438 40192 1325 17269 21033 8678 17417 24609 40195 17907 20345 49724 5424 70594 584 49394 70024 40687 19472 40806 800 477 70167 49500 20214 1142 49730 39568 4350 14795 17734 21960 52197 64507 65565 70266 39658 4508 36991 36238 23322 69739 23368 55791 17800 407 44963 36668 50137 17674 52401 70284 56462 24315 27924 24555 39754 64045 36987 17438 16873 64165 1979 27818 19367 49367 64362 64320 50489 6784 39785 22950 19399 21490 285 41033 20195 20048 24483 28196 52441 49228 52136 54629 50356 55840 1525 63587 56849 50418 23391 55076 23165 17926 52279 50262 49389 52284 53667 49884 70023 49383 56598 21445 50364 63907 45059 40512 14867 21402 52232 43517 19942 13524 5114 14787 40854 49877 20433 6174 49917 64508 167 21217 40249 56759 50491 26641 51463 21480 40578 21144 49762 37122 25570 40984 36990 14496 70125 27422 70518 4196 39631 45355 41125 23695 63864 23827 843 44686 7781 19970 70826 36643 57177 45671 24614 45232 37124 57199 1999 931 19785 20722 23273 37042 24254 6486 20910 56243 56428 20132 40699 6996 37069 50010 49373 40595 52354 45597 14424 40522 20131 37008 56468 36907 70136 21308 53422 207 49510 52213 36550 50064 40762 7582 56536 36594 36957 40635 49747 63883 64522 40584 49814 4503 40867 39794 31 64540 8638 41122 40296 37046 21029 40869 40673 40537 41152 50381 20794 64504 70100 40541 50466 51996 50325 49698 55853 36761 40871 23774 7319 23340 70048 40127 53982 36503 20536 51894 49366 35974 49207 36279 36755 40545 24664 64243 21389 6087 64010 36960 49886 20136 1082 6853 70093 70053 49914 70170 40098 56998 52602 40257 36913 17071 36881 21249 39456 4972 14094 70471 40437 65724 24892 40773 23628 23217 24603 20900 69956 70525 36854 36136 18086 155 36819 21053 17313 7738 19476 14736 70680 56620 17080 63908 18022 56324 8910 56624 19845 45979 49537 70723 14575 55941 53944 70064 36655 20320 22838 37204 56234 21482 14707 4424 53440 70764 21483 17277 16533 23743 69780 70316 20468 52036 63443 20950 52608 20766 56576 64235 20780 54839 40965 965 40858 70261 21043 20287 63585 40866 478 23308 21050 15441 50444 53219 89 21411 37099 70309 8219 70652 36762 20541 27285 21034 51967 21099 916 69849 49822 17186 63578 8091 17631 447 20869 17643 45640 49742 69962 21252 53523 17794 70299 52144 63463 69833 49186 70007 20760 7685 20896 40761 22942 36821 37172 36487 9416 56610 56114 63606 20802 21273 20775 21683 5808 40009 36884 70123 17640 910 17393 21328 24422 40600 57183 20448 36904 39743 52194 19648 21056 36460 6570 56169 54967 45812 70671 63871 20538 36583 70712 50053 55077 36696 50247 70757 19745 19581 64287 56707 69908 45990 53835 49246 14355 49451 16678 36498 56444 36771 49876 20763 53812 830 70264 40598 20204 5491 70852 420 64437 490 14506 26387 63503 21112 53411 21247 52914 70301 19360 53353 16287 40751 4598 45001 56 23194 69936 45055 17595 27010 56548 83 70346 63586 52865 27932 19541 13355 50057 45130 69920 8569 54392 39951 56602 20034 55874 54004 25997 69680 50043 36843 14709 70759 40135 9663 20101 20205 8798 52244 51803 64110 69950 56440 69954 21270 70571 21499 50457 70702 50042 70799 54273 70697 56358 20785 49696 49780 39671 21496 205 19988 21038 70355 56461 52683 20558 26246 36977 56371 49257 19474 22325 6555 63434 69708 40590 36283 40772 21317 63821 21063 39750 1640 58026 52266 70777 544 40968 57169 40060 20053 70303 17948 70785 69977 56366 70818 39450 55841 45095 19473 19989 40574 70188 1083 21007 20043 19700 40474 69942 17676 27209 17303 21374 70558 69756 70411 56121 22310 24040 21051 36463 56445 36989 70608 49702 36111 39813 36809 21399 40846 40863 49279 69867 53218 49255 37022 40389 70589 49785 63450 56052616 23211 70466 20435 6382 70867 14703 4559 70672 36905 52627 40106 53566 268 4461 70772 8449 338 5931 37210 21061 21485 41021 56357 19668 64106 5089 56463 20917 63980 36857 37211 56597 40972 500 20990 70294 56711 49820 52005 21097 22869 15654 17622 70829 70598 22906 40181 19784 70603 19442 49782 52541 49712 63255858 70459 21653 20715 70457 19422 70716 20714 70351 -10
-5
0
a
1
a
2
a
3
a
4
a
5
a
6
a
7
a
8
a
9
a
10
a
11
a
12
a
13
a
14
a
15
a
16
a
17
a
18
a
19
a
20
5
Dim1 (7.4%)
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020). Table 8A.4. Cluster validation indicators for the variables indicating the character of formal institutional environment (Dataset 4) Score
Method
Clusters
Criterion: internal Connectivity
2.9290
Hierarchical
2
Dunn
0.4183
Hierarchical
2
108
Appendices
Silhouette
Score
Method
Clusters
0.2285
Hierarchical
2
Criterion: stability APN
0.0004
Hierarchical
2
AD
8.4901
K-means
20
ADM
0.0053
Hierarchical
2
FOM
0.8835
K-means
20
Source: own elaboration using R-cran (clValid package, Brock et al., 2020). Figure 8A.4. K-means clusters for the variables indicating the character of formal institutional environment (Dataset 4)
KMEANS Clustering 57824 61298
Dim2 (8.8%)
5
0
-5
24797 70576 70158 17585 50639 42674 62389 57648 43374 66439 69944 4736547373 57593 61334 6130624978 70568 40989 17179 22275 9134 22183 48015 67448 70815 70472 70118 57855 8015 61553 51187 57845 38641 42679 44225 70531 43519 61843 8863 57866 70322 62774 70832 63285 62988 70106 36203 61559 57859 7965 48706 13324 61414 6015 22502 2117 62850 43316 48207 42780 70563 70209 48398 40334 51076 40967 28098 44509 51081 69146 62998 70125 62837 40383 70375 45866 70733 69581 43743 16982 48127 6370 13385 42500 18001 44357 51673 22125 42504 60609 39667 14319 57641 22733 3590 9457 51258 69978 40654 50809 40883 26226 27580 48183 45883 43652 36718 4063 49610 52280 42187 23754 63249 51110 26271 57840 49546 57917 57735 28093 47426 42214 70024 19648 49085 44518 48391 42885 43154 66333 40107 50986 13533 8259 35055 28109 2919 13244 26143 9479 43365 44818 47321 19484 28188 48433 39476 60692 54877 43056 48381 57524 50987 50676 57745 50830 70019 41812 48027 13084 70333 39621 41188 50163 9330 28194 68735 66475 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68710 50525 44229 69040 66631 39780 20233 42298 50913 39916 22095 50141 59842 40274 70562 8119 40143 51344 50979 24184 17942 1762 60320 36362 8331 42734 43927 47772 51293 44665 45010 69709 70688 25912 26139 6345 21904 1888 23292 47389 1380 60902 13846 27541 3891 40534 56187 17619 35118 50926 20366 59970 19626 43847 42425 28302 41297 13189 51414 66453 51971 4528 70359 13621 22545 51184 50752 49173 48250 66106 28056 70035 29353 25319 45394 42265 58358 4894 44214 49089 57189 25477 69882 70213 17902 44977 40332 51664 13505 44820 51115 49399 39688 63634 9290 44643 27503 41823 6761 13918 66532 41907 14279 43739 8257 50729 70573 41962 57472 4456 13972 48478 51397 57630 28186 5613 14023 58352 57674 7938 51080 51158 50860 65187 41529 36329 13591 68783 68712 57360 50832 51464 60108 47230 70765 58351 5776 69291 40392 41322 51177 54900 66108 43402 27740 7573 57565 27544 51025 70140 27609 28192 42441 50594 26641 41853 42317 14282 25054 68359 44994 39567 8067 44093 57188 51430 69069 47327 18005 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43052 45318 4273 18044 8502 8577 66099 42273 4819 68592 41177 8160 44270 39555 22470 40161 70866 66283 51146 43664 67462 45346 68838 57872 25341 44983 65920 57297 41968 40959 43861 66587 50981 44486 47786 47342 70596 51272 51096 60412 39707 27134 48584 23886 58335 40047 42230 5602 26958 67047 17186 5810 17049 28138 51041 38834 40361 13607 69025 34855 51504 59939 25304 22377 9233 26303 13677 47377 7913 2431 69768 70769 39855 60340 70063 69224 70092 45325 57559 51492 13625 69323 5088 4657 40158 55697 42300 36653 36301 16515 17694 6143 27431 43044 25624 29507 50173 67291 66611 14212 70724 22218 44837 25775 47183 41496 20803 13587 29451 43441 43570 24272 52181 51509 50383 70113 27521 9421 28129 48368 27389 51612 66712 56666 47916 43500 13880 51170 7223 64808 60693 42077 65144 45451 52738 40607 13122 70672 69659 29405 59986 50883 41699 25930 68788 14039 29648 68664 45220 26279 68680 13004 13356 66405 52824 48321 50798 25342 27517 45022 66313 63964 2688 68813 69990 50608 13551 17555 17895 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44439 8663 2668 27920 40812 1853 9495 6059 27879 54230 49924 56719 6543 28269 36341 36520 36320 21950 51691 61509 60671 48877 17980 45854 27723 6141 3654 65101 60656 2819 29728 23488 60676 54973 3142 6914 27057 27248 27710 64557 40404 53451 38490 17695 28565 6192 69168 13283 41922 68082 2626 16978 57078 35178 5914 26612 69046 21907 23580 6310 26252 51253 36599 67327 25165 42899 60518 17224 51674 23295 67433 5549 65595 37203 42071 55292 22965 35354 7203 49553 61597 25620 28740 52856 24236 63992 27238 28069 23047 24279 24478 22815 42868 39961 17068 25666 34955 62760 4003 43948 2953 27099 42483 60498 27379 61140 39894 55258 5072 24863 62201 62241 60437 24021 46109 69642 3574 39568 27963 35190 4122 14043 63397 28722 53127 28345 38918 25195 39317 17714 13067 58297 49737 5361 26692 29237 54279 65893 49528 51821 9370 27855 28305 28498 40257 28482 5799 22191 65977 26607 43183 23815 17273 22610 24242 60375 17311 70383 41880 28409 70481 27510 1792 13739 41586 5487 66255 12896 29600 67626 63560 65890 35858 23418 13936 2413 67701 54705 42097 67033 49196 60832 6 7376 36584 14329 2217 6885 13358 50785 63087 41761 42369 15145 2455 16562 28864 41776 67588 25684 25821 68475 24703 40976 54710 18106 34808 56996 70470 9347 20462 21994 45421 35504 63090 68989 51945 49642 63816 56381 55772 38603 68065 5745 67146 48108 60327 22187 54226 24606 4478 47042 6682 2572 25060 42632 28321 41058 25163 24767 50211 14221 63075 3517 41253 45659 24047 50501 38737 14041 29505 69662 35622 45448 23497 14331 24484 56419 54946 45294 34912 5977 47135 40987 22495 7589 28967 20215 41199 29284 17826 67816 62377 22963 63617 39807 40213 48939 18022 59732 39942 23088 68657 57213 41796 36541 44680 29438 38439 16816 35220 17085 13637 36721 3966 22176 26055 35890 66601 42426 64197 27180 8468 36017 7170 22032 26198 36985 27423 60715 28425 49910 27798 70271 22643 41809 36998 53650 6113 67920 50924 56994 67399 44009 49121 51519 50592 17683 6277 51799 52426 24111 56490 24958 24227 26369 39684 8581 27487 45407 13614 66370 15451 21067 5568 63646 8269 28767 56703 14351 7283 21948 43679 51898 23795 23704 66772 41212 20540 39880 36081 67063 15857 38922 22162 45803 45063 43609 66645 39593 51621 44551 70287 50424 66479 27453 13404 26479 40365 54718 8775 68317 58386 23357 49785 19654 25738 50422 64998 3790 57318 14617 37161 27495 28413 15630 7664 35057 48934 36634 50505 26524 59803 42609 40236 24574 6264 14377 36769 24199 26664 21811 41480 27141 2054 43157 61149 64232 25615 68125 58407 38597 52187 23542 51225 24612 69031 64405 36082 29061 40177 26408 50043 23266 44582 45211 42320 43008 16668 43269 40075 24613 52302 3042 29622 63911 54546 43277 44576 28296 22847 34887 36096 26708 36477 9760 70155 53616 65496 69686 52244 64447 25499 25508 42558 43946 40160 49716 3159 49090 5197 3392 8603 13377 24406 9475 16309 44326 23806 29495 70516 27927 16452 25727 24452 48803 45226 45971 54190 44396 70177 67145 4379 23166 22137 66740 13468 40120 23583 69156 3928 36695 49791 67772 56999 70089 69222 67243 54848 68497 22623 23887 64508 22867 42112 54545 17432 66835 36716 36573 5098 56968 60217 56443 45608 24825 22121 42555 36146 63971 22838 27751 22170 8175 39377 28417 42953 52558 3564 64603 28866 47993 14250 28707 22870 24018 66818 42012 34841 13257 40514 36536 2280 13594 67113 44857 35201 3627 25326 63947 23702 43364 23847 38576 49914 67892 68773 27224 27178 57660 4169 24717 4749 35523 60257 29646 5161 39481 39154 48883 15996 50629 29716 60717 68999 13563 36185 28824 42545 23691 52291 27800 3077 39231 2714 57834 29354 41055 17626 36114 17133 47269 68612 58343 3733 21791 45949 56982 43121 26000 45285 42406 36941 43368 16019 45395 57881 29046 29124 45458 41179 7819 29266 67982 22724 44262 63856 48941 23636 7352 2511 29118 40716 13717 15593 61592 42940 3818 29101 39482 3260 7469 39278 36274 24152 63334 16954 62644 3236 13617 22694 17282 22332 41828 42566 3567 14308 69242 29072 52105 4993 17583 17269 49687 23888 23093 63857 36382 24468 49431 40580 23100 6392 60918 17481 66939 52067 64592 44175 3657 4680 40020 38722 41954 27232 22441 66583 17820 1013 27014 64319 25248 40261 28759 36578 58016 24290 41638 55564 25892 56090 28804 16898 37096 39163 17403 28769 22096 27033 23223 50001 14392 59966 65651 70692 57496 5326 35250 66734 54204 67470 43011 37098 3138 22173 40195 54507 24728 16220 61787 3315 28962 42109 41653 43751 41524 28050 68081 4510 66455 39493 41164 4870 70581 25461 25625 35391 37043 63925 35181 21777 24266 63940 13033 28986 52325 46683 2060 4404 24059 24349 45993 63508 50324 19449 60651 27678 62147 15131 8173 6866 29189 13916 41003 63233 25649 20051 63979 45542 8062 29564 40998 55681 45640 35571 40568 46734 29480 68382 43070 6589 39300 66214 17795 27347 65048 16745 43390 16320 66401 7749 70652 60031 35316 41504 45445 3794 44995 53692 43881 67680 50042 25024 23068 18085 50210 2440 6946 6688 40714 39361 40858 3822 68130 3070 51535 57279 3422 36385 50336 46528 41799 7027 47854 65437 2754 43388 4558 2041 66143 24544 25215 51142 14990 23086 26972 9764 42404 37088 41843 22047 13733 22932 42026 52866 45334 6996 4245 67473 42949 23242 21912 49391 45138 21795 63489 16465 13574 26951 2563 41196 24474 27063 50541 68385 55084 36587 49339 26634 67609 66530 42612 52237 49344 43105 63558 42621 14223 45683 22383 58420 57336 17007 45000 18016 13511 56387 36544 58483 45871 24402 64032 15766 23284 55794 67669 8143 7780 16018 16306 49979 49433 42881 2974 36868 2062 21159 28283 13195 9706 59819 57891 44390 66797 47415 25893 54212 42598 65716 36041 53123 4706 41628 36539 41378 66411 18037 24636 38515 5159 40608 29626 22402 24166 8596 1082 6184 52130 66848 25032 43201 68396 24053 29578 3273 7306 57209 66522 62624 2954 26096 24661 64495 28698 39266 43745 49706 69536 68819 53178 39181 25147 16234 23445 57658 9017 24985 54650 41033 62418 59988 4389 59825 45229 6690 52662 53511 52764 42978 43029 66061 29483 64326 19431 4798 56164 57995 36522 59855 57363 38587 39155 64194 45793 68150 24961 2711 42002 57782 52496 60700 4972 14263 40572 42630 67552 62496 25269 3366 43088 2738 56687 63907 41949 17605 29145 66733 23615 13909 64345 54381 49199 37058 36614 7544 66663 40924 2021 14213 45600 51627 14077 49635 63010 42544 7673 46115 29149 60333 42588 23645 23164 22753 36864 38607 24864 23109 39221 63048 27354 17767 42000 57964 67305 39306 62229 14281 56322 40466 44658 24831 24746 28913 56984 5423 29122 3486 35322 27941 35901 36107 54012 70385 37135 27988 21780 54180 28577 15157 36530 68105 22828 46576 25619 22825 60316 49038 19852 64210 63663 52581 48867 35937 52404 52415 13784 20748 23970 57018 1012 28449 66791 63981 60793 67369 48571 67451 17930 17892 17028 27394 13232 49165 45568 36712 40090 39220 23268 22647 13510 23194 56176 63880 67868 5200 41710 64046 68864 56981 13157 24134 26232 66443 41716 52260 57502 46343 70846 9627 27687 27250 28719 4351 5112 24853 52313 4725 35177 24361 56163 13075 57444 2762 16615 6666 38428 45136 62521 61859 45233 7969 13581 55142 50149 13017 25189 7446 23244 61518 23277 38471 70391 69628 41433 27163 45892 46022 56120 1778 68334 1171 16139 55671 67435 3412 42826 64491 63455 51936 56648 3445 27330 53573 57918 5807 69367 51396 46387 43270 45379 6493 60425 22443 66723 66953 2545 23216 49291 19787 14115 56720 1900 23677 38661 50403 24736 56615 36166 26458 48642 24970 26398 52506 13275 39332 27479 25875 18113 63358 39245 23621 52831 43897 25522 54007 28665 23290 43512 18097 38648 51951 69993 38630 13970 57252 2474 55464 23103 3149 64555 47845 16078 44081 17317 45888 50781 49395 14076 66402 28745 28923 3364 45150 41180 66395 13884 63881 52167 24763 57023 4924 40012 14205 14899 19744 14406 49880 69625 49799 64330 18014 26655 67025 49945 66932 5928 23178 42596 24144 67614 39569 35188 40435 24492 45480 54846 63892 67293 41370 5467 16919 36370 66285 29655 3404 67874 16269 66237 37010 44053 13801 29431 37110 46016 54094 15182 64311 16883 23725 27853 26672 17457 24043 41230 68283 56276 24347 56467 57181 42942 5404 41858 62258 36897 29107 47166 8774 23837 52608 40505 35104 67378 28647 25128 66825 47619 66860 43530 2469 15418 17163 67103 3171 23028 39145 21772 22250 3004 27048 46048 36816 2713 4377 39747 6043 41440 22768 66815 52016 56035 13463 42937 52978 36217 26083 64333 66204 24959 25231 49256 19955 64401 9786 36300 15570 64187 67602 3716 28939 60136 35109 60464 52264 23910 14122 39516 45746 22215 54155 23049 21285 9373 64885 25500 57706 42051 16374 43464 24140 21861 56580 63807 13648 42654 44211 2200 38810 24754 67624 61822 26460 60127 66775 24800 23406 63760 17458 65962 9758 24981 66929 45405 40822 60117 17588 51849 66686 58379 7919 45374 67890 13139 51178 9451 28946 56052 62972 55174 14365 1596 13716 5208 64081 2766 66843 67810 3027 6701 37054 2999 36089 24768 67933 39534 38498 28790 13834 35612 57169 13395 42652 43141 56132 17175 36838 68026 43021 60472 60632 45089 45807 51827 12987 67809 44750 37119 21833 51910 6575 2513 21743 66302 20831 24126 7476 50461 41996 27873 39535 49168 60182 47104 48868 63698 40531 56967 2110 67867 2077 15874 64432 23811 42821 23462 66420 24386 52133 35948 3551 41103 21410 9309 41337 66266 6047 52689 22809 6628 1277 57508 65356 27274 48788 36991 60202 39256 22349 2644 16333 41093 21990 36677 13102 17655 53742 2582 23950 3005 29307 57764 60594 16176 66965 50182 41207 41752 56691 67208 25124 62699 40643 21218 40245 45900 39246 5724 50292 50506 68072 43709 41700 52652 25145 64420 52003 16671 29517 20162 70357 41992 13482 62333 29643 25923 41926 64136 36701 57056 14621 37167 67303 28676 26027 67893 8234 35335 3383 45222 2348 3786 39840 64332 39541 67543 20705 64440 37021 21419 63965 56953 67368 45486 50026 22178 25430 36831 63207 2516 22954 13643 45872 63347 52749 17666 46080 23690 17781 6136 63027 70547 49602 23388 39770 3754 26894 23403 29614 49879 5584 64893 2379 39756 42418 53777 24520 26722 36487 46884 24420 21826 16188 63895 40930 52139 2057 47679 28687 43381 63810 68268 67099 67364 67712 67965 55410 56139 43560 67192 51989 52793 24858 16401 13735 8773 6637 63783 38902 39489 49701 27839 17270 16072 2986 26794 23527 41739 15117 28894 23060 24640 38510 52542 25035 63624 63267 68310 2356 39639 21856 13471 17657 60265 66703 38582 63876 67802 16318 66630 66103 25067 63721 2683 49628 3715 24327 39715 27032 28735 40694 64120 66399 35689 37005 26068 38895 63717 45401 13148 64297 56097 2987 42811 22192 45988 17191 57986 20124 65173 51924 13238 46593 52214 15814 29080 36903 39175 45309 29532 40390 3617 56170 16417 25636 60096 49310 22481 37074 60817 57311 2346 63926 22298 6084 56933 57590 56939 17560 69802 38703 64079 55290 25274 2746 24555 15278 34804 2442 41246 58036 16780 2351 56199 24817 25572 3049 23168 36006 3630 21326 2580 46867 61350 16144 3033 17686 25316 52099 13263 49225 47173 17334 24811 49420 6386 2190 45440 66925 38453 15536 7120 45389 21582 38923 56641 62969 56511 9462 38444 64560 23305 50114 15276 46345 3732 3714 40804 16787 17093 43227 16186 52577 38438 3176 22981 13038 26867 27442 16252 39074 68857 16680 68352 13523 67899 66324 17880 3356 63016 15952 48721 45783 61751 49227 45204 56774 5328 38591 52332 42845 65635 9759 49822 52874 14631 23854 8540 15903 23436 57572 58133 42108 1968 14268 34932 36869 56196 24085 15252 55501 50261 14697 22070 57778 2660 43047 9201 3793 16153 2457 2789 7113 36911 35585 67784 29665 24282 59805 65443 23282 2697 17267 2514 39984 35699 8307 52209 23891 35429 39315 50440 15921 61828 42162 68242 63848 24808 3363 52200 36099 2676 28853 39274 49751 46579 28703 49287 24726 18124 45664 54470 56617 52469 2588 5911 24594 23942 56070 57453 27909 40773 51940 56119 15887 54498 38877 23441 65176 25082 60424 15621 46128 67026 61905 59900 8308 49487 68309 28895 2707 43531 20126 69959 63815 16233 52029 2325 24904 21172 45948 13690 15241 16267 67095 28886 45656 36192 36213 25096 36772 56713 7489 55159 2692 29047 2100 38581 3695 63777 29186 38546 16921 53394 21920 36768 23246 43766 57431 13564 49886 49949 46035 67742 52733 2716 69958 46013 22800 26688 50557 50553 22161 67088 55249 24658 3291 53646 22730 39400 3286 49921 7085 52017 3409 49967 14584 36854 50233 6142 3161 16235 38652 2432 9401 21955 63553 57512 3505 24422 45811 67159 16879 13007 16583 64011 67756 1366 24562 38949 35587 64453 39658 2163 29264 55954 4469 49783 49396 40421 3053 37092 6705 13854 50429 16291 3195 47303 28434 21465 43322 28115 2585 35753 68118 24017 15569 23936 38914 63689 24179 63785 38608 66948 45153 2108 15083 45508 3736 23992 21417 40147 50418 53400 46220 65993 15724 58054 45276 52579 23787 36678 68378 22110 24921 23454 35832 36639 3605 52125 45092 29310 66376 26936 24878 23147 39709 44261 52154 50218 64531 57668 56627 38835 2393 67960 56849 40939 36885 35471 3008 1095 2078 50067 58081 13330 14626 66260 52040 28764 66582 22877 8081 63905 36188 40679 24871 15447 60034 63532 54995 14597 56889 67385 45505 68178 48533 2158 56940 66890 21114 22666 55661 52501 3655 2733 3741 13125 55348 20897 68312 16577 61906 20472 28301 5678 67672 66446 56604 40650 19959 52512 24946 21504 45464 47067 52730 23743 67623 50523 39405 21085 54496 15512 42835 45728 45716 52270 24953 36032 45338 3257 5296 36916 45472 3744 56732 36592 14058 35385 46702 28379 39691 47412 60438 56392 49588 50477 52162 63555 56735 14380 35257 15987 42846 38758 67790 36272 13812 16299 2459 38996 65996 21501 61384 52232 23988 67352 23029 50162 24198 66896 17381 52448 63409 52408 36606 65879 3532 9235 9488 57568 15961 22571 52809 5948 67847 52780 39302 65715 59757 29449 14666 38425 15607 53236 28266 50423 27995 53268 65230 5960 14932 28720 52593 45607 57571 2906 36944 3162 29619 16798 7847 63380 65880 3432 64544 57460 68416 42696 9299 23627 35535 67921 45399 45721 63768 68146 52327 66904 66301 28275 25548 54955 36934 22924 20983 1576 56546 45928 25238 2814 14573 35633 26499 67300 14872 1908 58459 2507 63738 54017 52144 63968 6582 60732 16068 2249 38680 64452 24395 23187 63487 23078 48684 48698 45501 43984 67219 65905 68120 2271 60334 61935 67283 35857 53177 52142 52218 14904 23318 22290 2089 44393 56230 67627 36296 2388 68404 22360 1606 1551 63922 3696 38512 36252 44871 15338 67718 57669 15618 14734 56658 23881 55407 51917 42967 66495 28291 22431 22040 49664 55535 12955 16051 24645 67700 5969 2044 46288 16762 23280 38725 51974 50376 48826 13822 39406 3728 52487 3451 14916 24585 56509 65966 6857 22849 40104 2717 29068 45927 14576 55650 60276 41701 37085 38944 52431 67897 66943 39184 37078 23423 49742 15564 56051 39125 38633 43457 68255 39674 65656 24750 2832 14783 22136 15968 66998 56024 66870 1133 42156 53853 6105 14326 52194 14180 64131 52365 40532 60083 58060 39076 13583 24567 24918 27149 15665 66175 40681 36877 42808 22536 65140 63959 56192 15736 2178 36953 60046 67081 22227 53465 3454 70262 15321 46505 66758 2521 38899 14736 21610 69854 3501 17868 45174 16476 3730 29595 45017 45671 36502 21490 52564 54597 68063 22713 45310 9016 22902 14246 68137 36655 40935 51848 52224 40887 47156 56708 39179 49750 54410 3182 5084 14002 21581 56182 14970 3197 39390 5307 64182 29142 25532 66753 23310 67007 38885 67260 9384 9196 15739 2539 40950 57462 17529 55194 52829 41629 38731 39702 13989 56694 23797 53136 21937 63737 67418 66053 20977 52723 36167 16484 5454 26781 49894 56351 13955 45903 20873 13612 36083 36733 46002 16702 54058 16861 46849 22961 21492 56143 25753 68234 28863 45146 24822 1890 36335 54080 58455 16548 57373 67775 46544 50397 8566 42381 36236 22008 66267 51914 5910 44338 38786 22510 14715 53958 36191 41797 36723 35738 38995 14014 14578 21800 68170 45552 36231 63469 56420 17455 38833 47744 64288 53327 14619 14166 55131 14789 46380 22636 20749 15191 25375 8211 64541 16341 25495 66243 64514 22554 38871 15531 38447 68259 47006 16419 2702 46482 56376 47096 2430 68360 39016 50392 35415 39200 63620 20870 21154 63626 42797 20947 21252 58463 66334 66915 45603 1611 53228 43580 53315 62439 58078 38773 49651 67226 21839 45917 42883 67313 64482 66668 6230 36548 45329 56356 51956 46577 3438 48900 22952 66845 14663 20900 56088 7542 9492 48848 1771 49793 49147 21036 39670 66264 40172 47743 52486 56253 55274 49580 14671 64485 36455 50016 14774 15664 55275 36659 38632 54685 21342 45899 56389 49133 63129 38755 55276 35300 17937 14572 15476 21792 5710 48903 14579 21827 1924 16888 16592 5350 67594 16275 56291 39677 55331 64434 2673 29696 39950 21970 14423 38620 45332 64494 2234 1718 53626 16509 46421 38627 2066 52571 36439 54141 21055 55568 21475 66342 49810 53542 14532 39104 1783 14502 48893 48846 36040 57298 54006 22573 21665 52190 35616 39109 39304 14029 22344 21028 66233 53576 54102 55781 45520 14792 39283 21397 52584 9849 54104 53629 14354 -5
0
Dim1 (17.6%)
5
cluster
a
1
a
2
a
3
a
4
a
5
a
6
a
7
a
8
a
9
a
10
10
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
Appendices
109 Table 8A.5. Cluster validation indicators for the variables indicating the level of well-being (Dataset 5) Score
Method
Clusters
Criterion: internal Connectivity
2.9290
Hierarchical
2
Dunn
0.3190
Hierarchical
2
Silhouette
0.3593
Hierarchical
2
Criterion: stability APN
0.0501
Hierarchical
3
AD
3.2835
PAM
20
ADM
0.2468
K-means
2
FOM
0.8841
K-means
20
Source: own elaboration using R-cran (clValid package, Brock et al., 2020). Figure 8A.5. K-means clusters for the variables indicating the level of well-being (Dataset 5) KMEANS Clustering 6
Dim2 (16.5%)
3
0
-3
60584 56362 23302 64632 19274 44420 55259 24715 66653 12687 63835 11407 64992 66185 10307 65804 53073 64168 30165 32017 29917 52350 39147 673 32722 31557 39365 67263 29918 34030 32204 33339 20894 1012 21282 41724 55026 23454 65091 10360 24337 47767 64179 21171 65495 38915 61329 21912 46421 14839 10196 24129 19298 18403 21460 64043 30541 56195 33039 20604 10641 9896 38803 38254 38273 14209 34032 36238 32449 23106 63499 2315 29117 60838 32584 46518 32474 47027 53136 38516 56376 41716 33656 27773 2872643713 70042 3160 35701 55495 55063 38615 30546 32826 15860 33433 29686 33353 20874 41954 26635 28664 65827 14016 14354 60284 31209 12740 37088 31008 54699 4109 23551 24698 38916 65174 18835 14186 57087 38580 65333 24895 52232 32829 30519 37612 27385 9681 37195 60495 37897 57939 24798 50315 59973 60130 64699 64448 32813 12410 34179 67929 1074 10303 55181 58045 18567 55260 52033 60048 38117 42058 47109 21272 10209 38192 38191 46419 33456 33290 54748 8207 61032 43852 28984 37984 2501 59918 35625 62545 60432 64596 53188 66089 35114 2178 33927 14298 24408 53657 65303 41944 38078 38207 20965 617 21226 54406 25034 67371 42271 60420 44141 18584 38948 12785 38107 34719 65823 30601 47019 33149 67211 38690 21127 37281 36735 21564 21178 23315 65580 46681 24604 11961 15821 65139 20767 43350 43428 37657 70393 28700 33789 25008 34210 9236 36140 37666 24814 32515 65939 21255 57101 64868 39184 39324 56601 18712 32823 31647 62310 67344 64860 20787 55224 36836 18372 47513 36811 30775 56901 79 38286 37299 37781 33025 65556 70162 37900 57063 39129 23515 32712 12426 37187 13477 61274 58408 18048 35098 29453 22984 33310 58874 34382 56435 60790 69732 30733 64070 5119 23333 55548 65525 54868 50870 4645 46784 28832 67752 57924 64981 43872 25836 54464 42180 46546 24880 63671 12559 26189 52873 61971 37286 29462 8106 55464 38780 12732 60783 70170 38199 9940 68494 29682 46831 52991 54372 39329 34045 60468 60080 42369 23188 6588 44544 32340 36858 56386 61664 66091 55344 61792 46263 35851 53240 2180 54873 47996 70732 33844 56430 38075 29700 37574 15581 30430 19989 15894 55043 38575 6319 36375 37334 11447 57071 60457 19393 56715 30137 20026 63486 56134 45669 51935 61376 12297 34440 10270 53928 36323 23809 24615 65787 28971 2857 31927 66872 65430 55589 20269 54510 29864 53884 41718 1898 17281 25510 69236 65774 24062 62180 33326 37901 38682 9813 55365 53812 17215 10830 18640 18776 27421 10252 282 48532 9966 37011 39239 9794 15275 60440 8125 15760 29658 14828 16517 23921 60057 66152 69703 16506 18928 19094 42281 51091 2841 69957 58162 55741 30668 54824 28473 29668 57925 63548 1737 8032 20522 13641 25285 54946 68860 29844 24683 59975 24993 37745 23059 37825 1480 43299 41361 1258 24187 59210 58327 21122 19259 1955 32150 14663 480 51849 66681 67976 20335 59800 18468 36418 17645 30530 14673 65734 43577 20401 63136 64041 39241 59693 70204 24552 66595 7685 23973 41362 37431 62600 10545 33561 29138 23332 24678 41742 56933 29752 43121 69044 29379 60728 28944 49142 8377 31022 67670 58009 39 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25943 57305 45776 17863 4911 17199 48268 25264 45994 23972 11900 1561 44585 13127 69669 56424 1289 30038 42351 63284 57027 44126 59550 50774 45924 46889 48935 47681 29570 25338 69268 18964 30484 52726 45693 7898 50061 27695 28766 45925 40274 16940 45859 62790 4334 38237 61525 52801 4519 47224 30418 29643 51965 3957 27242 12960 17095 1326 1372 51936 49438 51999 27445 27762 7775 9785 70426 43640 68792 3362 58862 28629 30847 27803 70494 51741 28985 55907 45571 25593 47929 44349 57697 49296 49705 47244 69664 9168 8061 52609 44734 45272 28469 43589 62618 7415 50181 8828 63569 28127 4382 70741 49365 22365 16054 35964 11079 14624 41026 35343 19997 23179 13097 12907 52580 35536 22817 56103 47297 23920 34932 52998 48105 52416 22877 35347 39955 35339 11219 35432 11703 58753 42555 68726 10697 38861 8132 3492 60953 2946 2071 1566 47080 69429 8524 4079 6115 59256 3111 54962 69354 6479 41040 42548 52283 22292 34909 64334 15624 46223 31684 40878 38718 37849 35487 39901 7809 29354 6978 4403 68305 43631 5320 40295 64413 4758 44291 59262 46851 29033 7884 45676 61010 66268 62533 17683 57795 68298 45058 18456 51079 6884 61003 53815 42759 48513 26115 45227 26435 28152 59644 14290 7009 5165 49535 5600 6755 9097 5672 13927 22911 53088 24028 22354 30766 57598 43151 63064 61057 37381 51775 50834 18924 45766 22935 2859 14404 60565 30407 41272 13518 48728 35444 29676 66606 30959 40538 56554 5955 5475 18433 18180 29628 39543 24039 69362 14071 5224 50518 39467 18160 22644 5779 31891 47578 64544 28215 26731 27758 25057 14342 22010 4740 51409 7536 6220 47784 49771 6329 59097 45296 38082 30478 25318 41115 48644 67532 61398 42903 19966 4570 62779 39480 54377 41681 50912 33777 9553 45369 14149 22001 68569 34761 3682 39930 8602 62882 27981 6532 41808 14350 26078 41087 27388 50466 6214 27515 25793 57386 45944 17152 45417 42341 50197 13428 28925 41047 45627 36426 66027 43066 45946 28966 35920 52321 34242 13086 41156 11864 19015 52877 64521 4168 42336 48579 17396 47299 30782 28404 27767 8784 42878 34990 9235 26930 32769 40622 43901 48624 40217 25081 9596 5623 30413 27819 62856 45109 5469 26997 44465 20333 48769 59558 17816 13882 50090 2193 9541 7257 46865 47501 22582 8447 44979 44720 14162 8075 8989 26462 5153 50251 22071 27856 61580 40495 5161 66140 31617 59023 48237 59659 13732 7955 50420 19858 42274 25178 13906 48485 28452 26229 43929 57472 48599 41726 17977 6528 45781 26361 48161 6456 7504 44248 13813 5634 47374 69951 6413 5174 6071 14121 50120 46064 34731 44058 45547 57634 50164 13093 3848 50657 7624 69822 40398 5099 52754 4813 45930 40706 4605 60934 29377 22624 68364 33584 50266 13535 59541 13592 35926 44150 45477 45077 40114 15224 28747 40848 6976 48641 48004 39669 52372 35500 6561 47440 52401 38127 61166 8719 50152 13197 5553 30429 13682 43112 44004 59803 5227 50235 67097 52089 41031 5427 5492 40710 17808 61946 27471 27290 7036 58875 32930 54989 47554 63452 1459 52257 52223 11792 26947 45303 14295 70855 51760 2264 40318 17958 45025 8053 54766 44940 14389 45098 29726 25828 22140 53791 25660 21397 27007 54022 19450 27229 28118 50139 5347 62918 30996 20564 54525 45893 13603 65237 25043 32482 58836 39736 43857 48358 28618 39487 49806 39784 50023 57893 7146 40942 6751 6814 6110 52720 52145 30191 69751 6656 29103 49112 3517 21905 1288 13978 15163 10459 52843 1041 6908 13345 42956 8852 59849 44105 6124 45790 68129 27691 29548 42324 48047 27817 27848 3867 17425 50406 1199 12927 63154 28200 1660 47292 58081 44632 47909 57431 50494 52540 45874 13950 24870 44677 6926 58830 31856 39598 5859 25340 47540 26591 48981 39878 57794 51045 49723 51529 40067 25149 26074 57708 44852 30783 28847 69397 35692 22643 27523 43878 50417 38355 48849 59957 5724 49369 39599 32749 5297 69401 45318 22933 57687 7063 35934 47419 25667 69688 45640 9199 6121 25826 50838 19797 60725 5880 52442 62881 24868 57341 1654 27430 22078 63680 27666 59647 28801 70292 51061 5388 49719 50050 15165 68855 49641 28096 60240 18602 49600 18027 47748 21898 44676 4852 48553 70027 22649 70216 21771 60848 31385 49063 43781 40110 45127 48781 29127 38827 22595 35952 25493 63074 52075 48417 4955 19689 42387 4688 6389 57534 30446 42287 41567 50848 29948 17110 28028 49863 48851 27685 10621 45155 61303 61138 21911 25932 45642 48646 35922 5303 17777 62454 43661 17780 40950 49881 25494 3849 21767 47350 2754 26228 66498 8340 68373 1511 35057 26085 22313 70446 49725 13077 45608 54410 52595 40607 43665 45451 52301 11348 26593 51499 44819 48826 13842 22215 13623 45237 27870 29405 47197 52035 24883 29097 45322 48323 38667 22496 24302 7711 5068 17096 28165 11112 47549 42889 40049 12979 9551 5001 45350 49773 40149 22587 26737 41632 25293 43885 40550 43157 14948 40543 14060 27646 6707 52411 47715 52382 25647 40010 13624 59145 6872 28485 62925 6033 27673 57807 546557743 48324 59627 57817 45327 51665 48113 55912 48726 35657 45724 45049 52552 41108 22119 58491 45387 51811 6003 63281 17401 7041 19138 70699 5728 26800 1585 9129 45163 62415 1748 48743 68211 12950 46108 7130 26359 41017 61949 22257 51908 30388 13307 14949 39436 8300 45112 27513 49290 32443 45536 11045 48104 13316 50796 39766 62136 25298 52482 6172324200 24365 58834 31440 3967457645 24893 27522 28067 13513 45817 13349 40525 21706 51840 46004 25349 48711 68454 45143 47364
-6
-9
-6
-3
Dim1 (30.2%)
0
cluster
a
1
a
2
a
3
a
4
a
5
a
6
a
7
a
8
a
9
a
10
a
11
a
12
a
13
a
14
a
15
a
16
a
17
a
18
a
19
a
20
3
Source: own elaboration using R-cran (factoextra package, Kassambara and Mundt, 2020).
110
Appendices
Appendix 9. Herfindahl-Hirschman indices computed based on the clustering analysis output (WVS indices – Dataset 2) Country code
HH index
Country code
HH index
CHN
3049
BOL
1184
PAK
2527
NIC
1178
JPN
2515
MYS
1157
NZL
2244
GTM
1156
ZWE
1922
KGZ
1081
ETH
1883
UKR
1072
VNM
1873
BRA
1064
KOR
1816
KAZ
1031
HKG
1762
COL
1022
MMR
1727
USA
1007
PRI
1701
ECU
991
PHL
1666
MEX
986
AND
1638
RUS
981
DEU
1625
GRC
971
AUS
1617
IRN
952
NGA
1613
THA
929
IRQ
1544
ARG
922
BGD
1513
PER
904
TWN
1447
TUN
898
CYP
1354
TUR
889
MAC
1327
SRB
878
IDN
1271
CHL
860
Appendices
111
Appendix 10. Herfindahl-Hirschman indices computed based on the clustering analysis output (variables describing the character of the cultural environment – Dataset 3) Country code
HH index
Country code
HH index
BGD
8439
NGA
2231
JPN
7222
ECU
2158
IDN
6542
PRI
1923
NZL
5734
BRA
1888
ZWE
4525
HKG
1857
KOR
3757
THA
1772
ETH
3705
UKR
1733
DEU
3403
CYP
1607
AND
3277
MEX
1599
TWN
3122
CHL
1505
PER
3018
NIC
1406
MYS
2967
RUS
1374
PHL
2864
GTM
1302
GRC
2690
COL
1294
BOL
2546
SRB
1190
ARG
2439
ROU
1163