IDEAS home Printed from https://ideas.repec.org/p/ags/wisagr/12623.html
   My bibliography  Save this paper

Social Capital And Incentive Compatibility: Modelling The Accumulation And Use Of Social Collateral

Author

Listed:
  • Mogues, Tewodaj
  • Carter, Michael R.

Abstract

In economics, where the long resistance to reflecting on the effects of social interaction on economic behaviour is slowly waning, the concept of social capital may turn out to be a useful analytical tool. However, initial interest in social capital has produced a large variety of definitions, theoretical frameworks, empirical analyses, and even policy prescriptions. This paper provides a selective review and critique of some of the more recent literature on social capital. It then suggests that many of the problems in the existing literature can be addressed by lowering aspirations about what social capital is and reformulating it in terms of its impact on incentive problems in economic transactions in the presence of imperfect markets and costly or non-enforceable contracts. The paper finally advances a model of one of the ways that social capital resolves incentive compatibility problems, namely its role as a collateral asset

Suggested Citation

  • Mogues, Tewodaj & Carter, Michael R., 2003. "Social Capital And Incentive Compatibility: Modelling The Accumulation And Use Of Social Collateral," Staff Papers 12623, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:12623
    DOI: 10.22004/ag.econ.12623
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/12623/files/stpap460.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.12623?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Boucher, Stephen & Carter, Michael R., 2001. "Risk Rationing and Activity Choice in Moral Hazard Constrained Credit Markets," Staff Paper Series 445, University of Wisconsin, Agricultural and Applied Economics.
    2. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
    3. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-482, June.
    4. John Maluccio & Lawrence Haddad & Julian May, 2000. "Social capital and household welfare in South Africa, 1993-98," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 54-81.
    5. Narayan, Deepa & Pritchett, Lant, 1999. "Cents and Sociability: Household Income and Social Capital in Rural Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 871-897, July.
    6. Samuel Bowles & Astrid Hopfensitz, 2000. "The Co-evolution of Individual Behaviors and Social Institutions," Working Papers 00-12-073, Santa Fe Institute.
    7. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
    8. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," The World Bank Research Observer, World Bank, vol. 15(2), pages 225-249, August.
    9. Carter, Michael R. & Castillo, Marco, 2003. "An Experimental Approach to Social Capital in South Africa," Staff Paper Series 448, University of Wisconsin, Agricultural and Applied Economics.
    10. Parikshit Ghosh & Debraj Ray, 1996. "Cooperation in Community Interaction Without Information Flows," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(3), pages 491-519.
    11. Durlauf,S.N., 1999. "The case "against" social capital," Working papers 29, Wisconsin Madison - Social Systems.
    12. Laing, Derek, 1994. "Firm Specific Human Capital as an Employer Discipline Device," Economic Inquiry, Western Economic Association International, vol. 32(1), pages 128-137, January.
    13. Boucher, Stephen R. & Carter, Michael R., 2001. "Risk Rationing And Activity Choice In Moral Hazard Constrained Credit Markets," Staff Papers 12675, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pilar Useche, 2016. "Who Contributes to the Provision of Public Goods at the Community Level? The Case of Potable Water in Ghana," Development Policy Review, Overseas Development Institute, vol. 34(6), pages 869-888, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mogues, Tewodaj & Carter, Michael R., 2003. "Social Capital and Incentive Compatibility: Modelling the Accumulation and Use of Social Collateral," Staff Paper Series 460, University of Wisconsin, Agricultural and Applied Economics.
    2. Tewodaj Mogues & Michael Carter, 2005. "Social capital and the reproduction of economic inequality in polarized societies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(3), pages 193-219, December.
    3. Pilar Useche, 2016. "Who Contributes to the Provision of Public Goods at the Community Level? The Case of Potable Water in Ghana," Development Policy Review, Overseas Development Institute, vol. 34(6), pages 869-888, November.
    4. 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.
    5. Giuseppina Guagnano & Elisabetta Santarelli & Isabella Santini, 2016. "Can Social Capital Affect Subjective Poverty in Europe? An Empirical Analysis Based on a Generalized Ordered Logit Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 881-907, September.
    6. Sommarat Chantarat & Christopher Barrett, 2012. "Social network capital, economic mobility and poverty traps," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 299-342, September.
    7. Haddad, Lawrence James & Maluccio, John A., 2002. "Trust, membership in groups, and household welfare," FCND briefs 135, International Food Policy Research Institute (IFPRI).
    8. Mogues, Tewodaj & Carter, Michael R., 2004. "Social Capital and the Reproduction of Inequality in Socially Polarized Economies," Staff Paper Series 476, University of Wisconsin, Agricultural and Applied Economics.
    9. Nazim Habibov & Elvin Afandi, 2017. "Community-Level Social Capital and Household Strategies for Coping with Global Crisis in Transitional Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 687-710, January.
    10. Isabella Santini & Anna de Pascale, "undated". "Social capital and its impact on poverty reduction: measurement issues in longitudinal and cross-country comparisons. Towards a unified framework in the European Union," Working Papers 101/12, Sapienza University of Rome, Metodi e Modelli per l'Economia, il Territorio e la Finanza MEMOTEF.
    11. Nega, Fredu & Mathijs, Erik & Deckers, Josef & Tollens, Eric, 2009. "Gender, social capital and empowerment in northern Ethiopia," MPRA Paper 24629, University Library of Munich, Germany, revised 2010.
    12. Paolo Vanin, 2013. "Social and civil capital," Chapters, in: Luigino Bruni & Stefano Zamagni (ed.), Handbook on the Economics of Reciprocity and Social Enterprise, chapter 31, pages 306-317, Edward Elgar Publishing.
    13. Farhad Ameen, 2007. "Social Capital and Economic Well-being," Working Papers id:984, eSocialSciences.
    14. A. Arrighetti & G. Seravalli & G. Wolleb, 2001. "Social Capital, Institutions and Collective Action Between Firms," Economics Department Working Papers 2001-EP08, Department of Economics, Parma University (Italy).
    15. Mengel, Friederike, 2008. "Matching structure and the cultural transmission of social norms," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 608-623, September.
    16. Grootaert, Christiaan, 1999. "Social capital, houshold welfare, and poverty in Indonesia," Policy Research Working Paper Series 2148, The World Bank.
    17. Licht Amir N., 2008. "Social Norms and the Law: Why Peoples Obey the Law," Review of Law & Economics, De Gruyter, vol. 4(3), pages 715-750, December.
    18. Maarten Voors & Eleonora Nillesen & Philip Verwimp & Erwin Bulte & Robert Lensink & Daan van Soest, 2010. "Does Conflict affect Preferences? Results from Field Experiments in Burundi," HiCN Working Papers 71, Households in Conflict Network.
    19. Sandra Viviana Polanía Reyes, 2005. "Capital Social E Ingreso De Los Hogares Del Sector Urbano En Colombia," Documentos CEDE 2099, Universidad de los Andes, Facultad de Economía, CEDE.
    20. Thomas Markussen, 2015. "Social and political capital in rural Vietnam," WIDER Working Paper Series 087, World Institute for Development Economic Research (UNU-WIDER).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:wisagr:12623. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dauwius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.