Modes of Collective Action in Village Economies: Evidence from Natural and Artefactual Field Experiments in a Developing Country
In a canonical model of collective action, individual contribution to collective action is negatively correlated with group size. Yet, empirical evidence on the group size effect has been mixed, partly due to heterogeneities in group activities. In this paper, we first construct a simple model of collective action with the free rider problem, altruism, public goods, and positive externalities of social networks. We then empirically test the theoretical implications of the group size effect on individual contribution to four different types of collective action, i.e., monetary or nonmonetary contribution to directly or indirectly productive activities. To achieve this, we collect and employ artefactual field experimental data such as public goods and dictator games conducted in southern Sri Lanka under a natural experimental situation where the majority of farmers were relocated to randomly selected communities based on the government lottery. This unique situation enables us to identify the causal effects of community size on collective action. We find that the levels of collective action can be explained by the social preferences of farmers. We also show evidence of free riding by self-interested households with no landholdings. The pattern of collective action, however, differs significantly by mode of activity—collective action that is directly rather than indirectly related to production is less likely to suffer from the free rider problem. Also, monetary contribution is less likely to cause free riding than nonmonetary labor contribution. Unlike labor contributions, monetary contributions involve collection of fees which can be easily tracked and verified, possibly leading to better enforcement of collective action. © 2013 Asian Development Bank and Asian Development Bank Institute.
Volume (Year): 30 (2013)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://www.mitpressjournals.org/loi/adev|
References listed on IDEAS
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.:
- Kosfeld, Michael & Okada, Akira & Riedl, Arno, 2006.
"Institution Formation in Public Goods Games,"
IZA Discussion Papers
2288, Institute for the Study of Labor (IZA).
- Kosfeld, Michael & Okada, Akira & Riedl, Arno, 2006. "Institution Formation in Public Goods Games," Discussion Papers 2006-02, Graduate School of Economics, Hitotsubashi University.
- Michael Kosfeld & Akira Okada & Arno Riedl, 2006. "Institution Formation in Public Goods Games," CESifo Working Paper Series 1794, CESifo Group Munich.
- Kosfeld Michael & Okada Akira & Riedl Arno, 2006. "Institution Formation in Public Goods Games," Research Memorandum 029, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Michael Kosfeld & Akira Okada & Arno Riedl, 2006. "Institution Formation in Public Goods Games," IEW - Working Papers 299, Institute for Empirical Research in Economics - University of Zurich.
- Sawada Yasuyuki & Sugawara Shinya & Shoji Masahiro & Shinkai Naoko, 2014.
"The Role of Infrastructure in Mitigating Poverty Dynamics: The Case of an Irrigation Project in Sri Lanka,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 14(3), pages 28, July.
- Sawada, Yasuyuki & Shoji, Masahiro & Sugawara, Shinya & Shinkai, Naoko, 2009. "The Role of Infrastructure in Mitigating Poverty Dynamics: The Case of an Irrigation Project in Sri Lanka," 2009 Conference, August 16-22, 2009, Beijing, China 51461, International Association of Agricultural Economists.
- Sawada, Yasuyuki & Shoji, Masahiro & Sugawara, Shinya & Shinkai, Naoko, 2010. "The Role of Infrastructure in Mitigating Poverty Dynamics:The Case of an Irrigation Project in Sri Lanka," Working Papers 4, JICA Research Institute.
- Yujiro Hayami, 2009. "Social Capital, Human Capital and the Community Mechanism: Toward a Conceptual Framework for Economists," Journal of Development Studies, Taylor & Francis Journals, vol. 45(1), pages 96-123.
- Yan Chen & Sherry Xin Li, 2009. "Group Identity and Social Preferences," American Economic Review, American Economic Association, vol. 99(1), pages 431-57, March.
- Meinzen-Dick, Ruth & Raju, K. V. & Gulati, Ashok, 2002.
"What Affects Organization and Collective Action for Managing Resources? Evidence from Canal Irrigation Systems in India,"
Elsevier, vol. 30(4), pages 649-666, April.
- Meinzen-Dick, Ruth Suseela & Raju, K. V. & Gulati, Ashok, 2000. "What affects organization and collective action for managing resources?: evidence from canal irrigation systems in India," EPTD discussion papers 61, International Food Policy Research Institute (IFPRI).
- Armin Falk & Urs Fischbacher, 2001.
"A Theory of Reciprocity,"
CESifo Working Paper Series
457, CESifo Group Munich.
- Banerjee, Abhijit & Iyer, Lakshmi & Somanathan, Rohini, 2007.
"Public Action for Public Goods,"
CEPR Discussion Papers
6154, C.E.P.R. Discussion Papers.
- repec:tpr:qjecon:v:103:y:1988:i:1:p:179-99 is not listed on IDEAS
- Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2004.
"Social Capital and Contributions in a Public-Goods Experiment,"
American Economic Review,
American Economic Association, vol. 94(2), pages 373-376, May.
- Lisa Anderson & Jennifer Mellor & Jeffrey Milyo, 2004. "Social Capital and Contributions in a Public Goods Experiment," Working Papers 0317, Harris School of Public Policy Studies, University of Chicago.
- 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.
- Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," Journal of Development Studies, Taylor & Francis Journals, vol. 44(3), pages 311-338.
- Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki, 2010. "Motives behind Community Participation," Working Papers 16, JICA Research Institute.
- Dayton-Johnson, Jeff, 2000. "Determinants of collective action on the local commons: a model with evidence from Mexico," Journal of Development Economics, Elsevier, vol. 62(1), pages 181-208, June.
- Masako Fujiie & Yujiro Hayami & Masao Kikuchi, 2005. "The conditions of collective action for local commons management: the case of irrigation in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 179-189, 09.
- Imran Rasul & Iwan Barankay & Orana Bandiera, 2005.
"Cooperation in collective action,"
Natural Field Experiments
00211, The Field Experiments Website.
- R. M. Isaac & J. M. Walker, 2010.
"Group size effects in public goods provision: The voluntary contribution mechanism,"
Levine's Working Paper Archive
310, David K. Levine.
- Khwaja, Asim Ijaz, 2009. "Can good projects succeed in bad communities?," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 899-916, August.
- Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki & Ueyama, Mika, 2010. "Social Capital Formation in an Imperfect Credit Market," Working Papers 3, JICA Research Institute.
- Nicolas Faysse, 2005. "Coping with the Tragedy of the Commons: Game Structure and Design of Rules," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 239-261, 04.
- Ruttan, Lore M., 2008. "Economic Heterogeneity and the Commons: Effects on Collective Action and Collective Goods Provisioning," World Development, Elsevier, vol. 36(5), pages 969-985, May.
- Labonne, Julien & Chase, Robert S., 2011. "Do community-driven development projects enhance social capital? Evidence from the Philippines," Journal of Development Economics, Elsevier, vol. 96(2), pages 348-358, November.
- Ernst Fehr & Urs Fischbacher, 2002. "Why Social Preferences Matter -- The Impact of Non-Selfish Motives on Competition, Cooperation and Incentives," Economic Journal, Royal Economic Society, vol. 112(478), pages C1-C33, March.
- Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
When requesting a correction, please mention this item's handle: RePEc:tpr:adbadr:v:30:y:2013:i:1:p:31-51. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Pollock-Nelson)
If references are entirely missing, you can add them using this form.