Institutional Inversion and “Demand-Side” Versus “Supply-Side” Views of Culture

Institutional inversion occurs when collective attitudes lead to institutions that in turn lead to behaviors that are the opposite of those attitudes. We illustrate this process with the case of debt, in which antidebtor attitudes in Protestant (vs. Catholic) cultures led to institutions that fostered higher household indebtedness. We describe three factors hypothesized to make institutional inversion more likely: erroneous lay theories (particularly those that take a “demand-side” vs. a “supply-side” view of culture), moralization, and narrow construals (in terms of time, goals, and populations considered).