Monday, February 3, 2020

The Benefit of Joining the United States Comes from Becoming More Like New England

In an SSRN paper, Maseland and Spruk look at an interesting counterfactual: how would territories have performed that did in reality join the US, if they had not? Also, how might some countries had performed if they had joined the US, when in actual fact they never (fully) did? For this second question the countries are Puerto Rico, Cuba, Greenland and the Philippines. (Newfoundland strongly considered it, mid-20th century.) They find that joining the US is beneficial. However, and more interesting, they find that this effect is in part mediated by the states that actually did join, importing institutional values which are most similar to those of New England states.

This is interesting, because a) there is an overrepresentation of New England-bred and -educated people in America's cultural elites; b) the book Albion's Seed notes the different values brought by settlers from different parts of England to the New World, and as New England Puritans were literally breeding for intelligence, it's not a surprise they had such an outsize impact; c) this may relate to the "law of the Canadian border", which prompts one to ask d) if the benefit of joining the US decreases as one moves south - i.e., since Wyoming was much more likely to receive New England institutional norms than say, Mississippi (based on the country's predominantly east-west migration patterns), does that mean Mississippi did not benefit as much?

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