Social Capital and Incentive Compatibility: Modelling the Accumulation and Use of Social Collateral
AbstractIn economics, where the long resistance to reflecting on the effects of social interaction on economic behaviour is slowly waning, the concept of social capital may turn out to be a useful analytical tool. However, initial interest in social capital has produced a large variety of definitions, theoretical frameworks, empirical analyses, and even policy prescriptions. This paper provides a selective review and critique of some of the more recent literature on social capital. It then suggests that many of the problems in the existing literature can be addressed by lowering aspirations about what social capital is and reformulating it in terms of its impact on incentive problems in economic transactions in the presence of imperfect markets and costly or non-enforceable contracts. The paper finally advances a model of one of the ways that social capital resolves incentive compatibility problems, namely its role as a collateral asset
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Others with number 0512008.
Length: 36 pages
Date of creation: 08 Dec 2005
Date of revision:
Note: Type of Document - pdf; pages: 36
Contact details of provider:
Web page: http://220.127.116.11
Social Capital; Incentive Compatibility; Social Collateral; Credit;
Other versions of this item:
- Mogues, Tewodaj & Carter, Michael R., 2003. "Social Capital and Incentive Compatibility: Modelling the Accumulation and Use of Social Collateral," Staff Paper Series 460, University of Wisconsin, Agricultural and Applied Economics.
- O - Economic Development, Technological Change, and Growth
This paper has been announced in the following NEP Reports:
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.:
- Carter, Michael R. & Castillo, Marco, 2003. "An Experimental Approach to Social Capital in South Africa," Staff Paper Series 448, University of Wisconsin, Agricultural and Applied Economics.
- Andrew D. Foster & Mark R. Rosenzweig, 2001.
"Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas,"
The Review of Economics and Statistics,
MIT Press, vol. 83(3), pages 389-407, August.
- Mark Rosenzweig & Andrew D. Foster, 1995. "Imperfect Commitment, Altruism, and the Family: Evidence from Transfer Behavior in Low-Income Rural Areas," Home Pages _075, University of Pennsylvania.
- Narayan, Deepa & Pritchett, Lant, 1997.
"Cents and sociability : household income and social capital in rural Tanzania,"
Policy Research Working Paper Series
1796, The World Bank.
- Narayan, Deepa & Pritchett, Lant, 1999. "Cents and Sociability: Household Income and Social Capital in Rural Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 871-97, July.
- Durlauf,S.N., 1999. "The case "against" social capital," Working papers 29, Wisconsin Madison - Social Systems.
- Benoit, Jean-Pierre & Krishna, Vijay, 1985. "Finitely Repeated Games," Econometrica, Econometric Society, vol. 53(4), pages 905-22, July.
- Ghosh, Parikshit & Ray, Debraj, 1996.
"Cooperation in Community Interaction without Information Flows,"
Review of Economic Studies,
Wiley Blackwell, vol. 63(3), pages 491-519, July.
- Parikshit Ghosh & Debraj Ray, 1995. "Cooperation in Community Interaction Without Information Flows," Boston University - Institute for Economic Development 64, Boston University, Institute for Economic Development.
- Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
- John Maluccio & Lawrence Haddad & Julian May, 2000. "Social capital and household welfare in South Africa, 1993-98," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 54-81.
- Samuel Bowles & Astrid Hopfensitz, 2000. "The Co-evolution of Individual Behaviors and Social Institutions," Working Papers 00-12-073, Santa Fe Institute.
- Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
- Laing, Derek, 1994. "Firm Specific Human Capital as an Employer Discipline Device," Economic Inquiry, Western Economic Association International, vol. 32(1), pages 128-37, January.
- Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," World Bank Research Observer, World Bank Group, vol. 15(2), pages 225-49, August.
- Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.