Cross-Racial Envy and Underinvestment in South Africa
Trust games are employed to investigate the effect of heterogeneity in income and race on cooperation in South Africa. The amount of socio-economic information available to the subjects about their counterparts is varied. No significant behavioural differences are observed, when no such information is provided. However, when the information is available, it significantly affects individual trust behaviour. The low income subjects from both racial groups invest significantly less in partnerships with the high income subjects of the other racial group than in any other partnership. We attribute this behaviour to cross-racial envy, which on aggregate may lead to substantial underinvestment in the economy.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
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.:
- Alberto Alesina & Reza Baqir & William Easterly, 1997.
"Public Goods and Ethnic Divisions,"
NBER Working Papers
6009, National Bureau of Economic Research, Inc.
- Alesina, Alberto & Baqir, Reza & Easterly, William, 1999. "Public goods and ethnic divisions," Policy Research Working Paper Series 2108, The World Bank.
- Baqir, Reza & Easterly, William & Alesina, Alberto, 1999. "Public Goods and Ethnic Divisions," Scholarly Articles 4551797, Harvard University Department of Economics.
- Daniel Haile & Abdolkarim Sadrieh & Harrie A. A Verbon, 2003. "Self-Serving Dictators and Economic Growth," CESifo Working Paper Series 1105, CESifo Group Munich.
- Haddad, Lawrence James & Maluccio, John A., 2002.
"Trust, membership in groups, and household welfare,"
135, International Food Policy Research Institute (IFPRI).
- Haddad, Lawrence James & Maluccio, John A., 2002. "Trust, membership in groups, and household welfare," FCND discussion papers 135, International Food Policy Research Institute (IFPRI).
- Alesina, Alberto F & La Ferrara, Eliana, 2000.
"Who Trusts Others?,"
CEPR Discussion Papers
2646, C.E.P.R. Discussion Papers.
- Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
- MICHAEL R. CARTER & Marco Castillo, 2002. "The Economic Impacts of Altruism, Trust and Reciprocity: An Experimental Approach to Social Capital," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 448, Wisconsin-Madison Agricultural and Applied Economics Department.
- Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000.
The Quarterly Journal of Economics,
MIT Press, vol. 115(3), pages 811-846, August.
- Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
- Colin Camerer & Ernst Fehr & Herbert Gintis & Joseph Henrich & Richard McElreath & Robert Boyd & Samuel Bowles, 2001. "In search of homo economicus: Experiments in 15 small-scale societies," Artefactual Field Experiments 00068, The Field Experiments Website.
- Haddad, Lawrence & Maluccio, John A, 2003. "Trust, Membership in Groups, and Household Welfare: Evidence from KwaZulu-Natal, South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 51(3), pages 573-601, April.
- Fershtman, C. & Gneezy, U., 2000.
"Discrimination in a Segmented Society: an Experimental Approach,"
2000-9, Tel Aviv.
- Chaim Fershtman & Uri Gneezy, 2001. "Discrimination In A Segmented Society: An Experimental Approach," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 351-377, February.
- La Ferrara, Eliana, 2002.
"Inequality and group participation: theory and evidence from rural Tanzania,"
Journal of Public Economics,
Elsevier, vol. 85(2), pages 235-273, August.
- Eliana La Ferrara, . "Inequality and Group Participation: Theory and Evidence from Rural Tanzania," Working Papers 161, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- La Ferrara, Eliana, 2000. "Inequality And Group Participation: Theory And Evidence From Rural Tanzania," CEPR Discussion Papers 2433, C.E.P.R. Discussion Papers.
- Eliana La Ferrara, 2000. "Inequality and Group Participation: Theory and Evidence from Rural Tanzania," Development Working Papers 138, Centro Studi Luca d\'Agliano, University of Milano.
- Maluccio, John A. & Haddad, Lawrence James & May, Julian, 1999. "Social capital and income generation in South Africa, 1993-98," FCND discussion papers 71, International Food Policy Research Institute (IFPRI).
- Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 127-166, 04.
- Easterly, William & Levine, Ross, 1997.
"Africa's Growth Tragedy: Policies and Ethnic Divisions,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(4), pages 1203-50, November.
- Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
- Abigail Barr, 2003. "Trust and expected trustworthiness: experimental evidence from zimbabwean villages," Economic Journal, Royal Economic Society, vol. 113(489), pages 614-630, 07.
- La Porta, Rafael, et al, 1997.
"Trust in Large Organizations,"
American Economic Review,
American Economic Association, vol. 87(2), pages 333-38, May.
- Haile, D. & Sadrieh, A. & Verbon, H.A.A., 2003.
"Self-Serving Dictators and Economic Growth,"
2003-120, Tilburg University, Center for Economic Research.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_1657. 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: (Julio Saavedra)
If references are entirely missing, you can add them using this form.