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Comparison of the effects of homeownership by individuals and their neighbors on social capital formation: Evidence from Japanese General Social Surveys

  • Yamamura, Eiji

This paper, using individual data from Japan, explores how the circumstances of where a person resides is related to the degree of their investment in social capital. Controlling for unobserved area-specific fixed effects and various individual characteristics, I found: (1) not only is the rate of homeowners in a locality positively related to investment in social capital, but also the rate of homeownership there increases an individual's investment in social capital and (2) the effect of local neighborhood homeownership is distinctly larger than that of an individual's when endogeneity bias is controlled for using instruments such as land price and the rental price of an apartment.

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Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 40 (2011)
Issue (Month): 5 ()
Pages: 637-644

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Handle: RePEc:eee:soceco:v:40:y:2011:i:5:p:637-644
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620175

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  1. Alberto Alesina & Eliana La Ferrara, 2000. "Participation In Heterogeneous Communities," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 847-904, August.
  2. Ramseyer, J Mark & Nakazato, Minoru, 1989. "The Rational Litigant: Settlement Amounts and Verdict Rates in Japan," The Journal of Legal Studies, University of Chicago Press, vol. 18(2), pages 263-90, June.
  3. Eiji Yamamura, 2011. "Effects of social norms and fractionalization on voting behaviour in Japan," Applied Economics, Taylor & Francis Journals, vol. 43(11), pages 1385-1398.
  4. Steffen Huck & Michael Kosfeld, . "The Dynamics of Neighbourhood Watch and Norm Enforcement," IEW - Working Papers 199, Institute for Empirical Research in Economics - University of Zurich.
  5. Bénabou, Roland & Tirole, Jean, 2004. "Incentives and Prosocial Behaviour," CEPR Discussion Papers 4633, C.E.P.R. Discussion Papers.
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  7. Kamhon Kan, 2006. "Residential Mobility and Social Capital," IEAS Working Paper : academic research 06-A005, Institute of Economics, Academia Sinica, Taipei, Taiwan.
  8. Erzo F. P. Luttmer, 2001. "Group Loyalty and the Taste for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 500-528, June.
  9. Yamamura Eiji, 2008. "The Market for Lawyers and Social Capital: Are Informal Rules a Substitute for Formal Ones?," Review of Law & Economics, De Gruyter, vol. 4(1), pages 499-517, December.
  10. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
  11. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
  12. Paldam, Martin, 2000. " Social Capital: One or Many? Definition and Measurement," Journal of Economic Surveys, Wiley Blackwell, vol. 14(5), pages 629-53, December.
  13. Erzo F.P. Luttmer, 2004. "Neighbors as Negatives: Relative Earnings and Well-Being," NBER Working Papers 10667, National Bureau of Economic Research, Inc.
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  15. Michi Kandori, 2010. "Social Norms and Community Enforcement," Levine's Working Paper Archive 630, David K. Levine.
  16. Durlauf,S.N., 2001. "On the empirics of social capital," Working papers 3, Wisconsin Madison - Social Systems.
  17. yamamura, eiji, 2008. "Learning Effect And Social Capital: A Case Study Of Natural Disaster From Japan," MPRA Paper 10249, University Library of Munich, Germany.
  18. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
  19. La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
  20. Tom Ginsburg & Glenn Hoetker, 2006. "The Unreluctant Litigant? An Empirical Analysis of Japan’s Turn to Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 35(1), pages 31-59, 01.
  21. Yamamura, Eiji, 2008. "The effects of inequality, fragmentation, and social capital on collective action in a homogeneous society: Analyzing responses to the 2005 Japan Census," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2054-2058, October.
  22. Edward L. Glaeser & Charles Redlick, 2008. "Social Capital and Urban Growth," NBER Working Papers 14374, National Bureau of Economic Research, Inc.
  23. Eiji Yamamura, 2008. "Diffusion of home computers and social networks: a study using Japanese panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 15(15), pages 1231-1235.
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