From Pseudoerasmus.

‘Culture’ is defined as any information inside the mind which modifies behaviour and which got there through social learning — whether from parents, or peers, or society at large. Non-genetically inherited ‘content’ would obviously include technology/knowledge (“how to remove toxins from edible tubers”), beliefs (“witches can cause blindness”), and customs (use of knife & fork). But it also includes what economists would describe as “informal institutions”, i.e., mating systems, ethical values, social norms, etc.

Pointer from Tyler Cowen.

Apparently this is an updated version of an earlier essay. I recommend the piece as an excellent survey. Many sentences are worth quoting, including:

One might argue, the real institutional difference between developed and developing countries is actually a “social capital” gap: there are just many more coordination failures in developing countries.

Of course, you do not explain North Korea vs. South Korea on the basis of a “social capital gap.” But I think that the concept does have value in many other instances.

If you want to jump to the bottom line,

So to answer the question at the head of this post, “where do pro-social institutions come from?” — if ‘bad’ institutions represent coordination failures, then intelligence and patience must be a big part of the answer.

And, yes, he does get around to citing Garett Jones.