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Community and Economics

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  • Michael Storper

    (CSO - Centre de sociologie des organisations (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

Abstract

Community has a problematic relationship to economics. In general, contemporary political economics holds that groups have strongly negative effects on economic efficiency and growth, because groups bind individuals into situations where they can no longer realize their preferences, exit freely, and find effective representation for their interests. Communities are, at best, necessary evils when there are egregious market failures. There are other strands of economic research, however, that can be drawn on to provide micro-foundations for the welfare-enhancing properties of communities. With these in hand, we can draw a more complete picture of the potential welfare effects of communities, revealing how geographical processes — increasing factor mobility and global market integration — strongly affect the shape and functioning of communities and hence alter the balance of their positive and negative economic welfare effects.

Suggested Citation

  • Michael Storper, 2008. "Community and Economics," SciencePo Working papers Main hal-03394068, HAL.
    • Handle: RePEc:hal:spmain:hal-03394068
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03394068
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    Cited by:

    1. Robert Huggins & Michael Stuetzer & Martin Obschonka & Piers Thompson, 2021. "Historical industrialisation, path dependence and contemporary culture: the lasting imprint of economic heritage on local communities [Technology and the labour market]," Journal of Economic Geography, Oxford University Press, vol. 21(6), pages 841-867.

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