Social 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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Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number
11546.
References listed on IDEAS 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.:
Robison, Lindon J & Schmid, A Allan & Siles, Marcelo E, 2002.
"Is Social Capital Really Capital?,"
Review of Social Economy,
Taylor and Francis Journals, vol. 60(1), pages 1-21, March.
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Other versions:
Robison, Lindon J. & Schmid, A. Allan & Siles, Marcelo E., 1999.
"Is Social Capital Really Capital?,"
Staff Papers
11649, Michigan State University, Department of Agricultural, Food, and Resource Economics.
[Downloadable!]