Balkanization and assimilation: Examining the effects of state-created homogeneity
AbstractThis paper investigates the effects of state-created homogeneity on the ability of socially distant individuals to trade. I show that where the state is absent, socially distant agents adopt the customs, practices and institutions of outsiders they desire to interact with. By creating a degree of homogeneity, agents signal their credibility to each other. These signals, in turn, enable inter-group exchange. Formal institutions provided by government can create noise in these signals. This noise incapacitates the information mechanism employed by heterogeneous agents to enable trade.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Review of Social Economy.
Volume (Year): 65 (2007)
Issue (Month): 2 ()
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- Anthony Carilli & Christopher Coyne & Peter Leeson, 2008. "Government intervention and the structure of social capital," The Review of Austrian Economics, Springer, vol. 21(2), pages 209-218, September.
- Daniel Smith, 2014. "Heterogeneity and exchange: Safe-conducts in Medieval Spain," The Review of Austrian Economics, Springer, vol. 27(2), pages 183-197, June.
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