DiMaggio: Culture and Economy

P DiMaggio, “Culture and Economy,” The Handbook of Economic Sociology 27 (1994).

"The purpose of this chapter is to review critically research on the relationship between culture and economy. Most of us are accustomed to the view, assimilated by social research and theory, that economic relations influence ideas, worldviews, and symbols. That the reverse is true, that aspects of culture shape economic institutions and affairs, is less well understood and therefore richer in implication for economic sociology and for interdisciplinary conversations. Therefore I emphasize the impact of culture on the economy and only secondarily consider economic effects on culture" (27).

DiMaggio argues crucially two things: that every economic process can be seen as having crucial cultural aspects and also that these economic processes, in part because of their irreducible cultural components, must be seen granularly and not approached globally or with universal characteristics.

Culture can have many effects on economics, from defining interests (either constituting them or regulating them) and position the norms of market interaction.

If culture is so important, why don't we see it in economic analysis? DiMaggio argues that, in part, it is a matter of parsimony: economic analysis relies on parsimonious models and culture does not lend itself to such accounts.

The chapter then goes on in great detail to outline different cultural aspects to economic life. I skimmed.