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Local social capital and geographical mobility. A theory

Author

Listed:
  • Quentin David
  • Alexandre Janiak
  • Etienne Wasmer

Abstract

In this paper we study a large class of resource allocation problems with an important complication, the utilization cost of a given resource is private information of a profit maximizing agent. After reviewing the characterization of the optimal bayesian mechanism, we study the informational cost introduced by the presence of private information. Our main result is to provide an upper bound for the ratio between the cost under asymmetric information and the cost of a fully informed designer, which is independent of the combinatorial nature of the problem and tight. We also show that this bound holds for a variation of the Vickrey-Clark-Groves mechanism. Finally we point out implementation issues of the optimal mechanism.

Suggested Citation

  • Quentin David & Alexandre Janiak & Etienne Wasmer, 2008. "Local social capital and geographical mobility. A theory," Documentos de Trabajo 248, Centro de Economía Aplicada, Universidad de Chile.
    • Handle: RePEc:edj:ceauch:248
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Viviana Fernández & Brian M. Lucey, 2008. "Emerging Markets Variance Shocks: Local or International in Origin?," Documentos de Trabajo 251, Centro de Economía Aplicada, Universidad de Chile.
    2. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    3. Stephen Machin & Kjell G. Salvanes & Panu Pelkonen, 2012. "Education And Mobility," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 417-450, April.
    4. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    5. Yue Shui & Dingde Xu & Yi Liu & Shaoquan Liu, 2021. "The Influence of Human Capital and Social Capital on the Gendered Division of Labor in Peasant Family in Sichuan, China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 505-522, June.
    6. Kwan Ok Lee, 2014. "Why Do Renters Stay In Or Leave Certain Neighborhoods? The Role Of Neighborhood Characteristics, Housing Tenure Transitions, And Race," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 755-787, November.
    7. Janiak, Alexandre, 2008. "Welfare in Models of Trade with Heterogeneous Firms," IZA Discussion Papers 3803, Institute of Labor Economics (IZA).
    8. repec:hal:spmain:info:hdl:2441/10058 is not listed on IDEAS
    9. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: Some Empirics and a Conjecture on the Nature of European Unemployment," IZA Discussion Papers 3669, Institute of Labor Economics (IZA).
    10. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    11. Lance Freeman & Adele Cassola & Tiancheng Cai, 2016. "Displacement and gentrification in England and Wales: A quasi-experimental approach," Urban Studies, Urban Studies Journal Limited, vol. 53(13), pages 2797-2814, October.
    12. Michael Bräuninger & Andreia Tolciu, 2011. "Should I Stay or Should I Go? Regional Mobility and Social Capital," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 167(3), pages 434-444, September.

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    More about this item

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Z1 - Other Special Topics - - Cultural Economics

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