Social Capital, The Terms Of Trade, And The Distribution Of Income
AbstractSocial capital, a person or group's sympathy or sense of obligation for another person or group, assumes relationships can alter the terms of trade and the likelihood of trades between individuals. Other important economic consequences of social capital result from its ability to internalize externalities. This paper introduces social capital into the neoclassical model to derive forecasts of how relationships will alter the minimum-sell prices of farmland and the likelihood of trades between persons with different relationships. Also deduced in this paper is the effect of social capital on the level and dispersion of benefits from trade. Empirical evidence from a 1,500 farmland owner-operator survey is analyzed and provides support for the social capital paradigm.
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Bibliographic InfoPaper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 11546.
Date of creation: 1999
Date of revision:
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Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
Phone: (517) 355-4563
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Web page: http://www.aec.msu.edu/agecon/
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Institutional and Behavioral Economics; International Relations/Trade;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lindon Robison & A. Allan Schmid & Marcelo Siles, 2002.
"Is Social Capital Really Capital?,"
Review of Social Economy,
Taylor and Francis Journals, vol. 60(1), pages 1-21.
- Robison, Lindon J., 1996. "In Search Of Social Capital In Economics," Staff Papers 11589, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Robison, Lindon J. & Schmid, A. Allan, 1994. "Can Agriculture Prosper Without Increased Social Capital?," Choices, Agricultural and Applied Economics Association, vol. 9(4).
- Sandra Viviana Polanía Reyes, 2005. "Capital Social E Ingreso De Los Hogares Del Sector Urbano En Colombia," DOCUMENTOS CEDE 002099, UNIVERSIDAD DE LOS ANDES-CEDE.
- Philip Kostov & Myles Patton & Seamus McErlean, 2008. "Nonparametric analysis of the influence of buyers' characteristics and personal relationships on agricultural land prices," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 161-176.
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