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Social Capital and Community Governance

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Author Info
Samuel Bowles (University of Massachusetts, Santa Fe Institute and University of Siena)
Herbert Gintis (University of Massachusetts, Santa Fe Institute and University of Siena)

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Abstract

"Community governance" is the set of small group social interactions that, with market and state, determine economic outcomes. We argue (i) community governance addresses some common market and state failures but typically relies on insider--outsider distinctions that may be morally repugnant and economically costly; (ii) the individual motivations supporting community governance are not captured by either selfishness or altruism; (iii) communities, markets and states are complements, not substitutes; (iv) when poorly designed, markets and states crowd out communities; (v) some distributions of property rights are better than others at fostering community governance; and (vi) communities will probably increase in importance in the future. Copyright Royal Economic Society 2002

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 112 (2002)
Issue (Month): 483 (November)
Pages: 419-436
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Handle: RePEc:ecj:econjl:v:112:y:2002:i:483:p:419-436

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  2. Cardenas, Juan Camilo & Stranlund, John & Willis, Cleve, 2000. "Local Environmental Control and Institutional Crowding-Out," World Development, Elsevier, vol. 28(10), pages 1719-1733, October. [Downloadable!] (restricted)
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  3. Guth, Werner & Tietz, Reinhard, 1990. "Ultimatum bargaining behavior : A survey and comparison of experimental results," Journal of Economic Psychology, Elsevier, vol. 11(3), pages 417-449, September. [Downloadable!] (restricted)
  4. Ernst Fehr & Simon Gaechter, 2003. "Altruistic Punishment in Humans," Microeconomics 0305006, EconWPA. [Downloadable!]
  5. Lam, Wai Fung, 1996. "Institutional design of public agencies and coproduction: A study of irrigation associations in Taiwan," World Development, Elsevier, vol. 24(6), pages 1039-1054, June. [Downloadable!] (restricted)
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  7. Steven N. Durlauf, 2002. "On the Empirics of Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 459-479, November. [Downloadable!] (restricted)
  8. Hossain, Mahabub, 1988. "Credit for alleviation of rural poverty: the Grameen Bank in Bangladesh," Research reports 65, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  10. Besley, Timothy & Coate, Stephen, 1995. "Group lending, repayment incentives and social collateral," Journal of Development Economics, Elsevier, vol. 46(1), pages 1-18, February. [Downloadable!] (restricted)
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  13. Herbert Gintis, 2000. "Strong Reciprocity and Human Sociality," Working Papers 2000-02, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  14. Gneezy, Uri & Rustichini, Aldo, 2000. "A Fine is a Price," Journal of Legal Studies, University of Chicago Press, vol. 29(1), pages 1-17, January.
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  16. Ghemawat, Pankaj, 1995. "Competitive Advantage and Internal Organization: Nucor Revisited," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 3(4), pages 685-717, Winter.
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  19. Joseph Henrich & Robert Boyd & Samuel Bowles & Colin Camerer & Ernst Fehr & Herbert Gintis & Richard McElreath, 2001. "Cooperation, Reciprocity and Punishment in Fifteen Small-scale Societies," Working Papers 01-01-007, Santa Fe Institute.
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