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The clan and the corporation: Sustaining cooperation in China and Europe

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  • Greif, Avner
  • Tabellini, Guido

Abstract

Over the last millennium, the clan and the corporation have been the loci of cooperation in China and Europe respectively. This paper examines – analytically and historically – the cultural and institutional co-evolution that led to this bifurcation. We highlight that groups with which individuals identify are basic units of cooperation. Such loyalty groups influence institutional development because intra-group moral commitment reduces enforcement cost implying a comparative advantage in pursuing collective actions. Loyalty groups perpetuate due to positive feedbacks between morality, institutions, and the implied pattern of cooperation.

Suggested Citation

  • Greif, Avner & Tabellini, Guido, 2017. "The clan and the corporation: Sustaining cooperation in China and Europe," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 1-35.
    • Handle: RePEc:eee:jcecon:v:45:y:2017:i:1:p:1-35
    DOI: 10.1016/j.jce.2016.12.003
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    More about this item

    Keywords

    Institutions; Culture; China; Europe; Economic development; Economic history;
    All these keywords.

    JEL classification:

    • N00 - Economic History - - General - - - General
    • A10 - General Economics and Teaching - - General Economics - - - General

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