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Groups and information disclosure: Evidence on the Olson and Putnam Hypotheses in Japan

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  • Yamamura, Eiji

Abstract

There is controversy between Putnam and Olson concerning the role of group. Putnam argued that small group makes a contribution to economic growth whereas Olson asserted that small group hampers the economic growth through rent-seeking behavior. Since the end of the 1990s in Japan, there has been a remarkable rise in the rate of enactment of public information-disclosure ordinances by local governments. This paper uses the panel data of Japan to compare the effects of Putnam-type horizontally structured groups and Olson-type vertically structured groups on government information disclosures. The Arellano-Bond type dynamic panel model is employed to control for unobserved fixed effects and endogeneity bias. The major findings are as follows: (1) the Putnam-type group has a positive influence on information disclosure; (2) the Olson-type group has a detrimental effect on information disclosure. These support not only Putnam hypothesis but also Olson Hypothesis. The characteristics of groups should be considered carefully when the influence of group is examined.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28101.

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Date of creation: 08 Jan 2011
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Handle: RePEc:pra:mprapa:28101

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Keywords: Putnam; Olson; interest group; social capital; information-disclosure ordinance.;

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Cited by:
  1. Fabio Sabatini & Francesca Modena & Ermanno Tortia, 2012. "Do cooperative enterprises create social trust?," EERI Research Paper Series EERI_RP_2012_10, Economics and Econometrics Research Institute (EERI), Brussels.
  2. Kim, Byung-Yeon & Kang, Youngho, 2014. "Social capital and entrepreneurial activity: A pseudo-panel approach," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 47-60.

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