nep-soc New Economics Papers
on Social Norms and Social Capital
Issue of 2005‒11‒09
thirty papers chosen by
Fabio Sabatini
Universitá degli Studi di Roma, La Sapienza

  1. Can income inequality contribute to understand inequalities in health? An empirical approach based on the European Community Household Panel By David Cantarero; Marta Pascual; Jose Maria Sarabia
  2. Happiness, Social Preferences and Economic Policy By Luigi Bosco
  3. Explaining labor productivity differentials on Italian regions By Valter Di Giacinto; Giorgio Nuzzo
  4. Social capital as critical success factor for innovation development processes in industrialised regions, case study RIS-Silesia in the Silesia Voivodship (Poland) By Jan Stachowicz; Joanna Machnik-Somka
  5. Preparation of strategic development programmes: is participation the right way? By Irena Ðokiæ; Jelena Šišinaèki
  6. The Role of Clusters in Knowledge Creation and Diffusion – an Institutional Perspective By Michael Steiner
  7. Migropolis: migration networks and formation of ethnic clusters in cities By Nicola Daniele Coniglio
  8. Knowledge networks, which roles for regions and for different communication modes? By Marina Van Geenhuizen; Holmer Doornbos
  9. Business networking for SMEs as a means to promote regional competitiveness: A Theoretical Framework By Vitor Braga
  10. Role of regional policies in promoting networking and innovation activity of firms By Kirsi Mukkala; Jari Ritsilä
  11. Spatial agglomeration and business groups: new evidence from Italian industrial districts By Giulio Cainelli; Donato Iacobucci; Enrica Morganti
  12. Development and innovation of technological networks in some peripheral urban areas. By Luca Ruggiero
  13. Role of Networking in Innovation Promotion and Cluster Modernization: “House of the Future” Case By Jorge Alves; Maria José Marques; Irina Adriana Saur
  14. Regional innovation networks evolution and firm performance: one or two way causality? By Joana Almodovar; Aurora Amélia Castro Teixeira
  15. Internal migration between US-states - A Social Network Analysis By Gunther Maier; Michael Vyborny
  16. Proximity and R&D Cooperation between firms: Location, R&D and Output in an Oligopoly with Spillovers By Isabel Mota; António Brandão
  17. Knowledge intensive industries, networks, and collective learning By Franz Tödtling; Patrick Lehner; Michaela Trippl
  18. Geographical proximity and circulation of knowledge through inter-firm cooperation By André Torre; Delphine Gallaud
  19. Inequality Reduces Punishment-Induced Cooperation in Humans By James Fowler; Tim Johnson; Richard McElreath; Oleg Smirnov
  20. Illegal immigration and a heterogeneous labour force. When can quotas generate an internal conflict? By Gemma Larramona; Jesus Clemente; Pedro Garcia-Castrillo
  21. The Evolution of Trust and Reputation: Results from Simulation Experiments By Andreas Diekmann; Wojtek Przepiorka
  22. Does Competition Affect Giving? An Experimental Study By John Duffy; Tatiana Kornienko
  23. To Divest or not to Divest? Social Assets in Russian Firms By Tuuli Juurikkala; Olga Lazareva
  24. Interrelationship of economic growth and regional religious properties By Esa Mangeloja
  25. Institutional innovations, growth performance and policy By Argentino Pessoa
  26. The Networks of ERSA By Gunther Maier; Jouke Van Dijk
  27. Spatial spillovers and innovation activity in European regions By Rosina Moreno; Raffaele Paci; Stefano Usai
  28. Measuring the Institutional Factors in the Economic Growth of the Mexican Regions 1970 - 2000 By Maria Luisa Decuir - Viruez
  29. The role of “network of cities” in construction of global urban culture By Tüzin Baycan-Levent; Seda Kundak; Aliye Ahu Gülümser
  30. Join the Club - On the Attractiveness of Golf Club Membership By Johan Lundberg; Sofia Lundberg

  1. By: David Cantarero; Marta Pascual; Jose Maria Sarabia
    Abstract: In this paper the causal effects of socioeconomic status, in particular income, on individuals health in the European Union are analysed. We focus on the relationship between income and health. Finally, an international comparison of concentration indices for socioeconomic inequality in health based on the European Community Household Panel (ECHP) is presented. This survey contains data on individuals and households and the information is homogeneous across European Countries. KEY WORDS: Inequality, Health, Social Capital, European Community Household Panel, Ordered probit. JEL CATEGORY: D31, D63, I10
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p230&r=soc
  2. By: Luigi Bosco
    Abstract: Two recent research branches have called into question the hypothesis that the economic subject is rational and egoist, that is to say, that his/her sole objective is to maximize his/her own personal material interests. In the first place, the literature on the so-called happiness paradox has seriously put in question the given, widely diffused not only in the doctrine but also in the common perception, that a higher level of material welfare necessarily leads to a greater level of personal well being or happiness, on an individual level but even more so on a collective one. In the second place, experimental economics has produced a wealth of results that, vice versa, confirm something that the common sense and the personal observation of many had already suspected: economic subjects do not all and not always pursue exclusively the maximization of their own personal interests. This work critically discusses these two approaches and analyzes their interesting implications in economic policy
    JEL: I31 C92
    Date: 2005–07
    URL: http://d.repec.org/n?u=RePEc:usi:wpaper:459&r=soc
  3. By: Valter Di Giacinto; Giorgio Nuzzo
    Abstract: Labor productivity convergence is a key factor in the catching up process of less developed regions. For the regional economies as a whole labor productivity differentials can be traced back to three distinct determinants: - composition effects due to the peculiar structure of the regional economy; a lower than average productivity level could, for instance, be due to the fact that a greater share or the regional labor force is employed in sectors that are denoted by lower productivity at the aggregate level; - different regional endowments, within each given industry, of physical and human capital per worker; - differing levels of total factor productivity (TFP). The study aims at explaining substantial and persistent regional differentials in labor productivity in Italy providing: 1. an assessment of the role played by the three factors above outlined in the variuos regions; 2. an empirical evaluation of the role played by some of the relevant factors suggested in the related literature (e.g., public and social capital, R&D expenditure, international openness, financial markets development, agglomeration and diversification economies, geographic factors), in explaining regional TFP differentials. The empirical analysis makes use of a particularly rich data set including annual regional accounts and capital stock data for 17 industries covering the period 1970-1994. Estimates of human capital broken down by region and industry are produced by the authors pooling information from the Labor force survey and Bank of Italy’s Survey of households income and wealth. The analysis of structural composition effects is carried out by means of the shift-share technique proposed by Esteban (2000), while a cointegrated panel model is used to estimate total factor productivity by region and sector. In an attempt to assess the relevance of spatial externalities in explaining regional TFP levels the final regression analysis makes use of spatial econometric techniques.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p105&r=soc
  4. By: Jan Stachowicz; Joanna Machnik-Somka
    Abstract: Pace and success of transformation of traditional national economies into competitive network-based economies in a global environment in such countries like Poland - countries currently facing intensive economic reconversion - is mainly depending on the role and capacities of regional economic centres in initiating and developing pro-innovative processes. These economic centres, among which the Slaskie Voivodeship, are often characterised by long tradition in heavy, labour- and raw materials intensive industries such as the mining, metallurgic and chemical sector. The Slaskie Voivodeship is placed among the leading regions of Poland as for its social and economic potential. It is characterised by a high number of inhabitants (4.8m. people) living on a relatively small area (3.9% of Poland), resulting in a high population density (3.2 times more than the country’s average). In 2000, the Slaskie Voivodeship was placed second in Poland (behind the Mazowieckie Voivodeship) as concerns its economic potential measured in Gross Domestic Product . The Slaskie Voivodeship is currently playing a pilot role in Poland in developing networks and systems around a regional innovation strategy. More than 150 organisations (R&D institutes, institutes of higher education, SMEs, large companies, local governments, NGO’s) are involved in this process. The paper will – based on the case study of the Slaskie Voivodeship - include problem areas and solutions concerning development of pro-innovative co-operation networks and will discuss the issue of trust between organisations as critical factor in innovation strategy building and implementation processes. The document will also present a methodology related to intellectual capital, among which social capital, as key-condition in the above-mentioned process.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p552&r=soc
  5. By: Irena Ðokiæ; Jelena Šišinaèki
    Abstract: If you want to run a successful regional policy you need to behave similar to the company manager: you need to have vision, mission, strategy and action plans. In Croatia, during the past 13 years, more than 100 official national and regional documents called "strategies", "programmes" or "plans" have been produced. Therefore, it would be reasonable to assume that Croatia has an extensive experience in the production of such documents. Nevertheless, in the last couple of years Croatia has and is still receiving international and financial assistance for the production of development projects. Why? Although many, too many strategic documents were produced, once when the supervisory body adopts such documents, they usually end up in somebody's draw and without any repercussion stay there. Through the international assistance a new, participative methodology in regional development planning was applied with three regional programmes as results. The first section of this paper briefly explains the old practice and distinctive features of the participative methodology. The major part of the paper is focusing on the analysis of the three pilot programmes: Island of Šolta, Town of Virovitica and Town of Samobor. The idea behind these analyses is the critical overview and evaluation of the participative methodology implementation successfulness regional development planning. Although the analysis indicate that there are certain objective as well as subjective obstacles for sound implementation of participative methodology, the three pilot programmes clearly mark the new approach to regional development planning in Croatia. The last section of the paper is providing recommendations for the participation methodology future improvement in regional planning. Key words: regional development, strategic planning, participative methodology
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p232&r=soc
  6. By: Michael Steiner
    Abstract: Clusters and networks have received renewed attention in recent years not only as a tool for regional development in general but as an institution of knowledge creation and diffusion between the knowledge infrastructure of a region and the firms within the clusters. They are therefore often regarded as geographically condensed forms of economic cooperation and knowledge exchange. The recent renaissance of interest in institutions as a factor shaping economic performance has therefore also implications for the creation and sustained existence of clusters and networks as a tool for knowledge management and as learning organisations within and across regions. This institutional perspective serves to identify additional factors influencing economic behaviour leading to cooperation. Different strands of institutional thinking –institutions as “social technologies” in the tradition of evolutionary economics, clusters as a form of Coase institution integrating positive external effects of technological knowledge, the importance of knowledge sharing in the context of the “New Institutional Economics” – emphasize that connectivity cannot be effectively coordinated by conventional markets. Clusters and networks are among the non-market devices by which firms seek to coordinate their activities with other firms and other knowledge-generating institutions. But it is also important to emphasize that clusters as coordinating institutions are not automatically just there but that they are the result of an evolving process shaped by policy activities and entrepreneurial behaviour responding to new challenges. Clusters as social technologies are co-evolving with new physical technologies and are therefore in constant need to change themselves. They can be regarded as an answer to the problems of achieving agreement and coordination in a context where there is a collective interest. They combine different additional elements that are important for regional development and economic growth.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p612&r=soc
  7. By: Nicola Daniele Coniglio
    Abstract: In this paper we extend previous models of migration networks and ethnic cluster formation by considering migration as an ethnic-community wide phenomena where established migrants strategically provide support to newcomers. The incentive to provide support is associated with positive externalities which new waves of migrants might have on migrants already settled in the host location. Culturally-based tastes for particular goods and services generate an ethnic consumer demand and only individuals from the same ethnic community have the skills or the “insider’s information” required to provide these goods (protected market). If the ethnic population is large enough, an ethnic sector will emerge and eventually grow as the ethnic population expands further. According to the degree of preferences toward ethnic consumption, the mobility costs of the source locality population and congestion costs (hostility externalities) in the host location, alternative scenarios may arise. These scenarios provide a possible explanation of why different groups of migrants show different migration dynamics. Keywords: Consumption externalities, immigration, ethnic cluster, ethnic goods. JEL classification: F22, J15, J61.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p146&r=soc
  8. By: Marina Van Geenhuizen; Holmer Doornbos
    Abstract: Knowledge Networks, which Roles for Regions and for Different Communication Modes? Marina van Geenhuizen and Holmer Doornbos This paper presents first results of a study on how knowledge networks of companies are structured and how these are used. It questions the idea that knowledge networks are increasingly regional with a large importance of face-to-face contacts within the region. To this purpose the paper aims to identify the spatial pattern of knowledge contacts (from regional to international) and the use of particular modes of communication, like electronic ones and face-to face-contact, the latter within the region but also somewhere else in the world using air transport. First, theories on the behavior of companies in knowledge networks and theories on the use of communication modes are discussed. This is followed by an empirical analysis based on a selected sample of companies in two regions of the Netherlands: Southeast Brabant and the northern part of the Randstad. The empirical study makes use of rough set data analysis to identify differences between companies in the geographical spread of knowledge contacts and in the communication modes in using these contacts. Key words: Regions, Knowledge networks, Communication modes, Knolwedge contacts, Substitution, the Netherlands
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p448&r=soc
  9. By: Vitor Braga
    Abstract: The competitiveness of regions, as a means of promoting the competitiveness of a country as a whole, has been one of the main topics on the agenda of policy makers over the last decades. Several attempts at promoting competitiveness have been made with different degrees of success. In most cases, public investment in the regions was perceived as the solution to promote regional competitiveness and top-down policies were implemented. However, competitiveness also has an important dimension that is not related to public investment and depends instead on the cultural and institutional norms of a region. These regional characteristics are not easily addressed by traditional regional policies and require the study of cognitive processes and sociological and anthropological issues. Over recent years regional development has emphasised the importance of endogenous development. From this point of view, national or local governments’ policies must recognise that competitiveness not only comes from public investment in physical infrastructures but also depends on the behaviour, attitudes and capabilities of local entrepreneurs within the business environment. The scientific literature has been unanimous in showing that business networks carry advantages for regional competitiveness. Several key issues are raised regarding this issue including trust, local culture, and transaction costs. The networking of activities gains special emphasis with respect to SMEs. In most cases the regional economy depends on these firms and they are frequently seen as a key element within regional development. Also these firms depend much more on potential networks to gain advantages in information and expertise and often require joint ventures with respect to R&D activities. This paper will address the advantages of networking and its contribution to regional development as a way of promoting competitiveness. In so doing it will analyse the factors that lead entrepreneurs to co-operate and apply these findings in the context of regional and national economic development. Keywords: Network form of organisation, Local development, Trust, Co-operation.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p455&r=soc
  10. By: Kirsi Mukkala; Jari Ritsilä
    Abstract: The success of firms and regions is increasingly defined by their innovation and learning capabilities. It has been emphasized in several studies that a local operational environment may have a positive impact on innovation activity of firms. From policy point of view, the relationship between firms and their local environment is an important research topic. The purpose of this paper is to explore whether there is a demand for regional policy makers in promoting innovative and networking activity of firms, and what are the appropriate strategies in this regard. The concept of innovative milieu provides a theoretical base for this study. The data used is based on personal interviews representing 30 high tech firms located in Jyväskylä Science Park in Finland. The results show that the firms appreciate an individual-level approach by policy makers which enables them to take the real needs of firms into consideration. A developed service structure, that is planned to meet the demand of new and established firms as well as possible, is an essential part of the well functioning operational environment. Supporting contacts with service providers and experts from different fields and organizing collective meetings for firms are important targets for the policy makers. In the innovation process, a commercial view of external part is considered very crucial. The small advances which alternate between the development of the innovation process and networks among firms and their interest groups could form a favourable path towards an operational environment with efficient innovative networks.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p201&r=soc
  11. By: Giulio Cainelli; Donato Iacobucci; Enrica Morganti
    Abstract: This paper is a first attempt to analyse the relationship between spatial agglomeration and firms’ organizational structures. It takes advantage of a large data set on Italian business groups that allowed us to analyse the differences in the presence and characteristics of business groups between districts and non district areas. Overall the result confirms the hypothesis that spatial agglomeration of business activities influences firms’ organization. Groups are more widespread in industrial districts than in non-district areas; moreover groups in industrial districts are less diversified and more spatially concentrated than groups outside industrial districts. Key words: business groups, industrial districts, spatial agglomeration, firm’s organizational forms JEL Classification: L22, R12
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p402&r=soc
  12. By: Luca Ruggiero
    Abstract: The society that emerged out of the crisis of the fordist model of production and organisation of space is increasingly dominated by development, innovation and diffusion of urban technological networks (telecommunications, transport, energy, etc.). There are nowadays, working at different geographical scales, an amount of projects to increase the number of networks and connect a larger number of people and organisations. This is based on the notion that the emergence of an internationally-integrated and increasingly urbanised Network Society would allow better connection between the local and the global level and vice versa, giving those marginal areas the opportunity to take part to the main development dynamics. The rise of the network society is also often associated with a regeneration of the local administrations, in ways that would make them more efficient and clear, improving territorial government and citizens quality of life. Besides, the development of the ‘digital city’ seems to be connected with the emergence of new professional careers and a virtual space interacting community that would help to better meet the needs of local society and increase the level of participation to territorial government decision making. On the opposite side some authors argue that the contemporary conditions of development and innovation of infrastructure networks world-wide are particularly favourable to ‘secessionary tendencies’ and lead to the deliberate creation of premium networks that selectively tend to connect together only the most favoured users and places. In the present paper I will analyse these contradictory tendencies attributed to the development and innovation of infrastructure networks operating within and between cities. I will concentrate mainly on the experience of some, considered, marginal urban realities of the Mediterranean area.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p515&r=soc
  13. By: Jorge Alves; Maria José Marques; Irina Adriana Saur
    Abstract: This paper stresses the potential of innovative business cooperation networks in promoting regional competitiveness. It is based on the case study of a cooperation network, named “House of the Future”, carried out in the framework of a project where the University of Aveiro has an important role. It suggests success factors in the development of co-operation networks between firms from various sectors and a university. The aim of the “House of the Future” initiative is to promote an innovative approach to inter-organizational cooperation joining together firms from a number of different industrial activities related with the habitat meta-sector. This collaborative effort can function as an experiment for the design of regional innovation policies.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p82&r=soc
  14. By: Joana Almodovar; Aurora Amélia Castro Teixeira
    Abstract: Current research has revealed the existence of a relationship between networks and firm growth (Jarillo, 1989; Huggins, 2000). Nevertheless, network content and specificity and how these networks influence firm economic and financial performance has been little investigated. In addition, the influence of regions in relation to the spatial proximity on inter-firm networks should be an additional dimension taken into account if the determinants of firm performance are to be adequately understood. The most important linkages tend to be characterised by territorial closeness and have relevant effects over firm performance (Oerlemans and Meeus, 2002; Lechner and Dowling, 2003). Since automobile industry can be regarded as a worldwide cluster, where the evolution tendency on constructor’s behalf has been to gradually delegate technological competencies into industry suppliers, the regional networks acquire a renewed importance beyond the recognized benefits of sharing, interaction and reciprocity. Given that networks “do not happen in a virtual space where spatial proximity does not matter” (Lechner and Dowling, 2003: 9), the Portuguese inter-firm cooperation within the automotive industry can be regarded as a possible source of regional advantage for responding to globalisation competitive challenges. Thus, in this paper we explore how firms grow through the use of external linkages and become competitive, using case study material based on a Portuguese inter-firm network of the auto-parts industry (ACECIA) and one of its founding members, Simoldes. Using a set of performance indicators, we concluded that its positive evolution was contemporaneous and last beyond ACECIA´s constitution date. Moreover, evidence of possible leverage effects from the combined collaboration emerged indicating that the relation between networks and firm performance implies a two-way causality association.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p88&r=soc
  15. By: Gunther Maier; Michael Vyborny
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2005_04&r=soc
  16. By: Isabel Mota; António Brandão
    Abstract: This paper aims at explaining how proximity between firms affects cooperation in R&D. For that purpose, it is proposed a three-stage game amongst three firms where each firm decides about location, R&D and output. Firms’ decision about location determines a R&D spillover, which is inversely related to the distance between firms. R&D output is assumed to be cost reducing and exhibit diminishing returns. Cooperation is only allowed in the R&D stage. Our results allow us to conclude that there is a positive relationship between R&D output equilibrium and the distance between firms when firms act independently. When firms cooperate in R&D, R&D output for a cooperating firm increases with the degree of information sharing between them, as well as with a reduction of the distance between cooperating firms. Firms’ decision about location is also affected by R&D activities: if R&D activities run independently, the clustering of firms only occurs for a convex spillover function; if R&D activities run cooperatively, clustering is always observed if there is an increased information sharing between firms. Keywords: Location, R&D cooperation, R&D spillovers
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p177&r=soc
  17. By: Franz Tödtling; Patrick Lehner; Michaela Trippl
    Abstract: Knowledge has become a key source of competitiveness for advanced regions and nations, indicating a transformation of capitalism towards “knowledge-driven economies“. Know ledge intensive sectors in production and in services have a lead in this respect, they can be considered as role models for the future. The innovation process, the mechanisms of knowledge exchange and the respective linkages in those industries differ quite markedly from those in other sectors. Clustering and local knowledge spillovers are frequently stated phenomena, although it is still unclear to what extent regional networks and collective learning are indeed relevant and what the mechanisms of knowledge flows are. The aim of the paper is to examine in a differentiated way the character of the innovation process and the ype of interactions in those industries, in order to find out how strongly they are related to regional, national and international innovation systems. We will analyse the relevant types of actors, the respective mechanisms of knowledge exchange and the importance of collective learning and innovation. The paper will discuss relevant theoretical concepts and available evidence and it will be based on an empirical analysis for Austria. The data base is a recent firm survey which was carried out in the year 2003. From this analysis conclusions regarding the role of regional and other innovation systems for the development of knowledge-based industries will be drawn.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p167&r=soc
  18. By: André Torre; Delphine Gallaud
    Abstract: The production of scientific and technological innovations has become essential for many firms, but the latter are seldom in possession of all the knowledge needed for this activity because of the increasing complexity of knowledge bases or because R&D departments are too small. As they do not possess internally all the skills they need, firms wishing to innovate have recourse to external sources, such as cooperation with other firms or public organizations of research. However, acquiring external knowledge is not sufficient; one must also be able to use it in a specific process of production, to transform it into organizational routines, because it is important not only to integrate this knowledge, but ideally to use it to produce new knowledge. This process of creation, re-creation or imitation of new resources not only necessitates several technical and organizational adaptations, but also requires frequent relations of cooperation and partnership. The integration of new knowledge cannot be done in one go, but progressively during the course of the innovation projects, which implies that relations be sustained for a period of time. But the interests of the participants to this interactive process, as well as their opinions concerning technical issues sometimes vary or diverge. This is why co-operations are also sources of tensions and conflicts that jeopardize the adaptation of knowledge produced somewhere else to the context of the firm or even completely hinder the innovation process. In this paper, we try to provide some answers to the following question: What is the role played by geographical and organized proximities in the context of these external acquisitions of knowledge? In other words, can they help reduce the intensity of conflicts and thus facilitate the interactive process of innovations? First, we present shortcomings of innovation theory and works on spillovers claiming the importance of geographical proximity for circulation of knowledge without considering organizational prerequisites to reach this impact. Having explained the relevance of permanent as well as temporary geographical proximity, we will then turn to a discussion of conflicts between cooperators within innovation processes from a theoretical as well as an empirical perspective. The empirical study is based on a case study of French biotechnology firms and will serve to prove our hypothesis that temporary geographical proximity play an important role in preventing and resolving conflicts between innovators.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p35&r=soc
  19. By: James Fowler (University of California, Davis); Tim Johnson (Max Planck Institute for Human Development); Richard McElreath (University of California, Davis); Oleg Smirnov (University of Miami)
    Abstract: Humans often cooperate, voluntarily paying an individual cost to supply a benefit to others. Public good experiments show that punishment induces a high level of cooperation, even when it is costly to the punisher. It is unclear, however, what motivates individuals to engage in costly punishment: a desire to retaliate against non-cooperators or a desire to reduce inequality among group members. Although both motives might have a positive effect on cooperation, they cannot be separated in the conventional public good game. Here we conduct an experiment in which we add a randomly-generated fixed payoff to a public good game with punishment. This design allows us to determine whether punishment is aimed at low contributors or high earners. The results show that players punish frequently, penalizing both those who contribute the least and those who earn the most. However, the exogenously-created inequality tends to distort the meaning of punishment, which dramatically reduces the amount of cooperation observed. This evidence suggests that social equality may be necessary if punishment is to have a positive influence on cooperation in humans.
    JEL: C9
    Date: 2005–08–26
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpex:0508003&r=soc
  20. By: Gemma Larramona; Jesus Clemente; Pedro Garcia-Castrillo
    Abstract: In this paper we analyze the effects on the welfare of heterogeneous native workers in the context of the presence of legal and illegal immigrants, and where the main instrument of economic policy takes the form of entry quotas. In the framework of a model of overlapping generations, we find that these effects are not monotonous. More particularly, we note that in certain circumstances the effects on the native workers of a change in the quota are opposite in nature, depending on whether or not these workers are qualified. The key aspect of this result is, on the one hand, the effect of illegal immigration on wages and, on the other, the part of income generated by the illegal immigrants that is appropriated by the natives for managing this “informal” labour market. Keywords: Illegal immigration; entry quotas; qualification. JEL: F22, J61,J68.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p125&r=soc
  21. By: Andreas Diekmann (ETH Zurich, Department of Social Sciences & Humanities); Wojtek Przepiorka (ETH Zurich, Department of Social Sciences & Humanities)
    Abstract: In online interactions in general, but especially in interactions between buyers and sellers on internet-auction platforms, the interacting parties must deal with trust and cooperation problems. Whether a rating system is able to foster trust and cooperation through reputation and without an external enforcer is an open question. We therefore explore through ecological analysis different buyer and seller strategies in terms of their success and their contribution to supporting or impeding trust and cooperation. In our agent-based model, the interaction between a buyer and a seller is defined by a one-shot trust game with a reputation mechanism. In every interaction, a buyer has complete information about a seller's past behavior. We find that cooperation evolves under two conditions even in the absence of an external sanctioning authority. On the one hand, some minimal fraction of buyers must make use of the sellers’ reputation in their buying strategies and, on the other hand, trustworthy sellers must be given opportunities to gain a good reputation through their cooperative behavior. Despite the apparent usefulness of the reputation mechanism, a small number of deceitful sellers are able to hold their ground.
    Keywords: trust game, reputation, agent-based simulation
    JEL: C9
    Date: 2005–08–30
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpex:0508005&r=soc
  22. By: John Duffy (University of Pittsburgh); Tatiana Kornienko (University of Stirling)
    Abstract: We explore whether natural human competitiveness can be exploited to stimulate charitable giving in a controlled laboratory experiment involving three different treatments of a sequential ``dictator game.'' Without disclosing the actual amounts given and kept, in each period players are publicly ranked -- by the amount they give away, by the amount they keep for themselves, or spuriously. Our results are generally supportive of the hypothesis that competitive urges can encourage or frustrate altruistic behavior, depending on the competitive frame. We find some support for an alternative hypothesis that relative concerns are due to information-gathering rather than competition.
    Keywords: Dictator game, repeated decisions, charitable giving, altruistic behavior, competitive altruism, status, relative standing, tournaments, motivation, information-based relative concerns
    JEL: C91 D64
    Date: 2005–08–13
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpex:0508002&r=soc
  23. By: Tuuli Juurikkala; Olga Lazareva
    Abstract: In the planned economy firms were made responsible for providing their workers with social services, such as housing, day care and medical care. In the transforming Russia of the 1990s, social assets were to be transferred from industrial enterprises to the public sector. A law on divestment was put into force but it provided mostly general principles. Thus, for a period of several years, property rights over a major part of social assets, most notably housing, were not properly defined as the transfer decisions were largely left for the local level players to make. Strikingly, the time when assets were divested varied considerably across firms. In this paper we take a political economy approach and utilize recent survey data from 404 medium and large industrial enterprises in 40 Russian regions to study the effects different forms of bargaining between the firm and the municipality may have on the timing decisions. In particular, we apply survival data analysis to explore the determinants of the divestiture timing. Our results show that the firms which divested assets later receive more benefits from the local authorities, especially in places where there are more benefits to extract (i.e. the local budget is richer). Further, we find evidence that the firms which transferred assets later performed relatively worse in 2002 in terms of profitability, productivity and investments. Finally, the data shows that poorly defined property rights have an adverse effect on the incentives to invest in social assets, and hence on the quality of public service provision.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p637&r=soc
  24. By: Esa Mangeloja
    Abstract: During the past few years, empirical economic growth modeling has emerged by constructing and testing numerous model and explanatory variable alternatives. One of the most promising recent idea consists that also religious aspects should be included as explanatory variables into economic growth models, therefore capturing influences of culture, moral and ethics. Moral institutions and ethics affect the economic development, as for example, trust and honesty are essential requirements for emerging economic activity. In this paper, analysis of economic growth extends from international to regional level. Religious activities and beliefs are documented over a long time period in many Western economies, making quantitative empirical time series data available. Firstly, following the idea and argumentation by Barro and Mc Cleary (2003a, 2002), “religious production efficiency” measure is constructed and used in economic growth regressions for8 OECD countries, proxying quantifiable dimensions of culture. By using panel estimation methods and additionally time-series estimations for each country, rather than usual cross-country regressions, more information is gained concerning the country specific growth and religion characteristics. Empirical evidence from the panel data estimations seems to suggest that religious beliefs attain more relevance than religious attendance. Religious production efficiency, containing both belief and activity aspects, was not found statistically significant with panel data or with individual 8 OECD countries growth model, except for Finland. Significant coefficient for Finland can be explained by referring to Finland’s unique religious market properties, as the level of religious beliefs have historically been unusually high, and continue to be, in Finland. Secondly, interrelationship of Finland’s religious and economic variables are analyzed in regional level. Three small Finnish cities, all with strong religious Christian revival background, gain positive and significant coefficients when consumer income growth is regressed by religious activity. Nevertheless, more exact understanding on the links between these concepts are essentially needed to better model the economic consequences of cultural, religious and moral variables. Therefore, several suggestions are presented to gain better growth information in the future empirical growth modeling, including better theoretical background, more robust estimation techniques and longer data.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p94&r=soc
  25. By: Argentino Pessoa
    Abstract: The aggregate picture of world economic growth shows a remarkable diversity in growth performance, both geographically and across time. We find high growth countries and low growth countries; countries that have grown rapidly throughout time, and countries that have experienced growth spurts for a decade or two; countries that took off around 1980, and countries whose growth collapsed around 1980. What is the role of policy in this diversity? How can policy help transform this picture? This paper tries to answer these questions, analysing the performance of the high growth developing countries and the way they developed institutional innovations. Analysis of the success story of China, with an astonishing annual growth rate of 8.0 percent since the late 1970s, together with other well-known East Asian experiences that have taken place in countries such as South Korea and Taiwan, provide the basis to build some stylised facts about the take-off and the process of sustaining economic growth. On the other hand, the experience of liberalisation, deregulation and privatisation in countries such as Mexico, Argentina, Brazil, Colombia, Bolivia, and Peru have offered substantial evidence that allows us to question the standard formulae used to propel and maintain economic growth. The paper puts forth three main conclusions that could be extensive to the growth of sub-national regions: a) Successful reforms are those that put together sound economic principles and local capabilities, constraints and opportunities; b) Economic growth is not the natural order of things, and setting up a fair and levelled ground may not be enough to stimulate productive dynamism; c) Institutional innovation requires a not be enough to stimulate productive dynamism; pragmatic approach that avoids ideological lock-in. Keywords: Economic growth, development policy, market/government failure, institutions, spillovers, stylised facts.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p157&r=soc
  26. By: Gunther Maier; Jouke Van Dijk
    Abstract: Cooperation and networking are important instruments and suggestions of an innovation oriented regional policy. They bring together similar, but not identical ideas, practices and problems and can therefore stimulate the creation of new ideas and consequently innovations. In this paper, we intend to look at ERSA and try to identify to what extent the european regional science community implements its own suggestions. Based on the information that is contained in the CD-ROMS from earlier congresses we want to identify the amount of coauthorship in ERSA, the type and spatial reach of this collaboration, and its development over time. We hope to be able to identify key nodes of a co-publication network and its basic structure. This information would be valuable not only from an academic point of view, but also for advancing European regional science toward the intended European research area.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p599&r=soc
  27. By: Rosina Moreno; Raffaele Paci; Stefano Usai
    Abstract: This paper explores the spatial distribution of innovative activity and the role of technological spillovers in the process of knowledge creation across 138 regions of 17 countries in Europe (the 15 members of the European Union plus Switzerland and Norway). The analysis is based on an original statistical databank set up by CRENoS on regional patenting at the European Patent Office spanning from 1978 to 1997 and classified by ISIC sectors (3 digit). In a first step, a deep exploratory spatial data analysis of the dissemination of innovative activity in Europe is performed. Some global and local indicators for spatial association are presented, summarising the presence of a dependence process in the distribution of innovative activity for different periods and sectors. Secondly, we attempt to model the behaviour of innovative activity at the regional level on the basis of a knowledge production function. Econometric results points to the relevance of internal factors (R&D expenditure, economic performance, agglomeration economies). Moreover, the production of knowledge by European regions seems to be also affected by spatial spillovers due to innovative activity performed in other regions. Keywords: Innovative activity, Spatial analysis, European regions, Knowledge production function.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p588&r=soc
  28. By: Maria Luisa Decuir - Viruez
    Abstract: This paper examines the role of institutional factors in the economic growth of Mexican regions. Assuming an institutional dimension of growth, we will assess the relationships between informal and formal institutional features, infrastructure conditions and growth. Following the approach of the document presented at the ERSA Conference (2003), we introduce the results obtained in the process of measuring the institutional factors for three different periods 1970-1985, 1985-1994 and 1994-2000. Cluster Analysis techniques were applied to a database of 13-14 variables; from we identified patterns of institutional characteristics for the Mexican regions and groups of states that share some features. The results are confronted with the evidence of growth for these periods, in order to identify if a particular regional institutional structure has led to higher or lower rates of growth. Keywords: Institutions, Regional Growth, Mexico, Cluster Analysis.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p273&r=soc
  29. By: Tüzin Baycan-Levent; Seda Kundak; Aliye Ahu Gülümser
    Abstract: The globalization process has led to an increased interaction between cities and to a new urban system/network in which they need to be competitive and complementary at the same time. “Network of cities”, such as World Cities, Eurocities or Sister Cities are among the well known examples of interaction and cooperation of the cities at the regional and global level. The cities of different regions and countries tend to share their experiences and their cultures within these networks in order to develop some common spatial or social strategies and further cooperation. “Best practices” or “benchmarking are the most important issues of the interaction between cities. While benchmarking facilitates the cultural dialogue between different cities, the common values developed in this process make a great contribution to the construction of global urban culture. The main aim of this paper is to investigate the role of urban networks in the interaction and integration of cities by means of “Sister City” movement that can be defined as a partnership of two cities from different countries which is based on cultural and social understanding to achieve cultural dialogue. This paper focuses on the “Sister Cities of Instanbul” to highlight the development process of the movement in the historical and geographical context and to evaluate the development phases of the relationship with sister cities. The results of our study show that Istanbul’s relationships with its sister cities are at the “associative” and “reciprocative” phases that can be defied as the earlier phases of the relationships.
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p106&r=soc
  30. By: Johan Lundberg; Sofia Lundberg
    Abstract: This paper concerns the attractiveness for member ship in Swedish golf clubs. A representative voter model is derived and the attractiveness for member ship in golf clubs estimated using a unique data set on qualities of the golf course, the quality of neighboring courses and characteristics regarding the region where the golf club is located. Characteristics and composition of population within the municipality where the club is located have a significant impact on the attractiveness of the club. The attractiveness increases as the share of number of junior members decrease. Golf is found to be a substitute to publicly financed goods. Keywords: spatial econometrics, sports, utility maximization JEL classification: D71, L83, R12
    Date: 2004–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p242&r=soc

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