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From Drought To Flood : Environmental Constraints And The Political Economy Of Civic Virtue

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  • Galassi, Francesco L.

    (University of Warwick and Università di Ferrara)

Abstract

The paper models co-operative engagement under varying environmental constraints giving rise to different forms of collective action problems, specifically focussing on water management in pre-industrial societies. I show that societies where water availability is strongly seasonal develop no mechanism to encourage society-wide cooperative behaviour because the benefits of water storage are fully excludable. With pre-industrial technology water storage is a pure club good, and optimal club size can be shown to be very small under credible parameter values, converging to 1 in some cases (private good). The social consequences of the environmental constraint include strongly circumscribed co-operation and rent seeking. In contrast, areas where water management involved flood control and irrigation develop society-wide institutions based on self-sustaining co-operative engagement assisted by external policing. The model thus offers an explanation of varying levels of "civic virtue" in different areas.

Suggested Citation

  • Galassi, Francesco L., 2002. "From Drought To Flood : Environmental Constraints And The Political Economy Of Civic Virtue," The Warwick Economics Research Paper Series (TWERPS) 643, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:643
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    1. Joseph Henrich, 2001. "In Search of Homo Economicus: Behavioral Experiments in 15 Small-Scale Societies," American Economic Review, American Economic Association, vol. 91(2), pages 73-78, May.
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    3. Galassi, Francesco L., 2001. "Measuring social capital: Culture as an explanation of Italy's economic dualism," European Review of Economic History, Cambridge University Press, vol. 5(1), pages 29-59, April.
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