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An Experimental Approach to Social Capital in South Africa

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Author Info

  • Carter, Michael R.

    (U of Wisconsin)

  • Castillo, Marco

    (U of Newcastle upon Tyne)

Abstract

This paper measures the social capital of trust and trustworthiness in South Africa using an experimental protocol designed to distinguish these norms from altruism. Experimental participants played multiple roles, making it impossible to construct theoretically-grounded norm measures based on an individual's play across roles. Two-stage estimates of a social interaction model of norms identifies the presence of endogenous social effects, indicating that communities can be meaningfully typified as having and maintaining distinct normative environments. However, in contrast to studies that rely on less direct social capital measures, we do not find that trust boosts mean household living standards when controlling for the endogeneity of norms.

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File URL: http://www.aae.wisc.edu/pubs/sps/pdf/stpap448.pdf
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Bibliographic Info

Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 448.

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Date of creation: Aug 2003
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Handle: RePEc:ecl:wisagr:448

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References

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  1. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
  2. James Andreoni & Lise Vesterlund, 2001. "Which Is The Fair Sex? Gender Differences In Altruism," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 293-312, February.
  3. Abigail Barr, 1999. "Familiarity and trust: An experimental investigation," CSAE Working Paper Series 1999-23, Centre for the Study of African Economies, University of Oxford.
  4. Marcel Fafchamps & Bart Minten, 2000. "Returns to Social Network Capital among Traders," Development Working Papers 145, Centro Studi Luca d\'Agliano, University of Milano.
  5. Gary Charness & Matthew Rabin, 1999. "Social preferences: Some simple tests and a new model," Economics Working Papers 441, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2000.
  6. Eswaran, Mukesh & Kotwal, Ashok, 1986. "Access to Capital and Agrarian Production Organisation," Economic Journal, Royal Economic Society, vol. 96(382), pages 482-98, June.
  7. Nancy Buchan & Rachel Croson, 1999. "Gender and Culture: International Experimental Evidence from Trust Games," American Economic Review, American Economic Association, vol. 89(2), pages 386-391, May.
  8. Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, vol. 108(448), pages 726-35, May.
  9. Ernst Fehr & Simon Gaechter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," CESifo Working Paper Series 336, CESifo Group Munich.
  10. Cox, Donald & Eser, Zekeriya & Jimenez, Emmanuel, 1998. "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 57-80, February.
  11. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-98, April.
  12. Burks, Stephen V. & Carpenter, Jeffrey P. & Verhoogen, Eric, 2003. "Playing both roles in the trust game," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 195-216, June.
  13. Akerlof, George A & Yellen, Janet L, 1990. "The Fair Wage-Effort Hypothesis and Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 255-83, May.
  14. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
  15. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
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Cited by:
  1. Omar Sene, 2012. "Trust as a Proxy for the Ability to Produce Local Public Goods: Testing Different Measures," Documents de travail du Centre d'Economie de la Sorbonne 12041, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. Alvin Etang Ndip & David Fielding & Stephen Knowles, 2009. "Does trust extend beyond the village? Experimental trust and social distance in Cameroon," Working Papers 0907, University of Otago, Department of Economics, revised Jul 2009.
  3. Jeffery Carpenter & Juan Camilo Cardenas, 2006. "Behavioural Development Economics: Lessons from field labs in the developing world," Middlebury College Working Paper Series 0616, Middlebury College, Department of Economics.
  4. Schechter, Laura, 2007. "Traditional trust measurement and the risk confound: An experiment in rural Paraguay," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 272-292, February.
  5. Tanaka, Tomomi & Camerer, Colin & Nguyen, Quang, 2009. "Measuring Norms of Redistributive Transfers: Trust Experiments and Survey Data from Vietnam," MPRA Paper 16119, University Library of Munich, Germany.
  6. Durlauf,S.N. & Fafchamps,M., 2004. "Social capital," Working papers 12, Wisconsin Madison - Social Systems.
    • Durlauf, Steven N. & Fafchamps, Marcel, 2005. "Social Capital," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 26, pages 1639-1699 Elsevier.
  7. Máximo Torero & Marco Castillo & Ragan Petrie, 2008. "Ethnic and Social Barriers to Cooperation: Experiments Studying the Extent and Nature of Discrimination in Urban Peru," Research Department Publications 3246, Inter-American Development Bank, Research Department.
  8. Tewodaj Mogues & Michael R. Carter, 2005. "Social Capital and Incentive Compatibility: Modelling the Accumulation and Use of Social Collateral," Others 0512008, EconWPA.
  9. Tomomi Tanaka & Colin F Camerer & Quang Nguyen, 2006. "Poverty, politics, and preferences: Field Experiments and survey data from Vietnam," Levine's Bibliography 122247000000001099, UCLA Department of Economics.
  10. Burns, Justine, 2006. "Racial stereotypes, stigma and trust in post-apartheid South Africa," Economic Modelling, Elsevier, vol. 23(5), pages 805-821, September.
  11. Janssens, Wendy, 2010. "Women's Empowerment and the Creation of Social Capital in Indian Villages," World Development, Elsevier, vol. 38(7), pages 974-988, July.
  12. Juan Camilo Cardenas & Jeffrey P. Carpenter, 2005. "Experiments and Economic Development: Lessons from Field Labs in the Developing World," Middlebury College Working Paper Series 0505, Middlebury College, Department of Economics.
  13. repec:hal:journl:halshs-00717141 is not listed on IDEAS
  14. Omar Sene, 2012. "Trust as a Proxy for the Ability to Produce Local Public Goods: Testing Different Measures," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00717141, HAL.

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