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on Social Norms and Social Capital |
| By: | Luigi Guiso |
| Abstract: | The financial crisis has brought to light diffuse opportunistic behaviour and some serious frauds.Because of this trust towards banks, bankers, brokers and the stock market has collapsed to unprecedented levels and there are so far no signs of recovery. This paper uses survey-based information to document the collapse of trust, show its link to the emergence of frauds in the financial industry and discuss its consequences for the demand of financial instruments, investors portfolios and more generally investors reliance on financial markets. It argues that unless serious changes happen in the behaviour of the financial industry, the move towards safer portfolios and away from ambiguous securities that lack of trust entails, will have adverse effects on the availability and cost of equity financing. Accordingly a number of proposals to restore trust are discussed. Their common feature is to restore trust – a belief – by limiting the scope for opportunistic behaviour through a transfer of power from financial intermediaries to investors. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2010/07&r=soc |
| By: | Luigi Guiso; Paola Sapienza; Luigi Zingales |
| Abstract: | This chapter reviews the recent debate about the role of social capital in economics. We argue that all the difficulties this concept has encountered in economics are due to a vague and excessively broad definition. For this reason, we restrict social capital to the set of values and beliefs that help cooperation—which for clarity we label civic capital. We argue that this definition differentiates social capital from human capital and satisfies the properties of the standard notion of capital. We then argue that civic capital can explain why differences in economic performance persist over centuries and discuss how the effect of civic capital can be distinguished empirically from other variables that affect economic performance and its persistence, including institutions and geography. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2010/08&r=soc |
| By: | Yanos Zylberberg (Paris School of Economics) |
| Abstract: | In rural economies, risk-sharing arrangements through networks of relatives and friends are common. Monitoring issues seem to impede the development of informal insurance mechanisms at higher level. As such, after a large and covariate shock, the prerequisites under which informal arrangements are feasible might refrain the community to redistribute efficiently resources between sub-groups. I rely on a model of imperfect commitment to derive predictions on the sustainability of risk-sharing arrangements in the aftermath of extreme events at a higher level than usually considered by the literature. I then test these predictions on a representative panel data in Vietnam, using tropical typhoons trails and wind structures. The estimation of a structural equation derived by the theory is compatible with a model of imperfect commitment where the aftermath of natural disasters is associated with stronger enforcement mechanisms at commune level. As such, between 30 and 55 cents are covered through informal transfers at hamlet level for a relative income loss of $ 1.The influence of pre-disaster social norms and existing ties to prevent disruption of integrative mechanisms in the community gives support to this interpretation. Finally, communities having already suffered important trauma show greater signs of resilience. |
| Keywords: | Natural disasters, informal insurance, coordination, imperfect commitment. |
| JEL: | D85 O12 O17 Z13 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:1110&r=soc |
| By: | Matthew Gentzkow; Jesse M. Shapiro |
| Abstract: | We use individual and aggregate data to ask how the Internet is changing the ideological segregation of the American electorate. Focusing on online news consumption, offline news consumption, and face-to-face social interactions, we define ideological segregation in each domain using standard indices from the literature on racial segregation. We find that ideological segregation of online news consumption is low in absolute terms, higher than the segregation of most offline news consumption, and significantly lower than the segregation of face-to-face interactions with neighbors, co-workers, or family members. We find no evidence that the Internet is becoming more segregated over time. |
| JEL: | D83 L86 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15916&r=soc |
| By: | Mariani, Fabio (Université Catholique de Louvain) |
| Abstract: | Virtue is modeled as an asset that women can use in the marriage market: since men value virginity in prospective mates, preserving her virtue increases a woman's chances of marrying a high-status husband, and therefore allows for upward social mobility. Consistent with some historical and anthropological evidence, we find that the prevalence (and the value) of virginity, across societies and over time, can be influenced by socio-economic factors such as male income inequality, gender differences, social status and stratification, and overall economic development. |
| Keywords: | mating, marriage, cultural values, social classes, gender |
| JEL: | D1 J12 Z13 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4875&r=soc |
| By: | Bin Dong (QUT); Benno Torgler (QUT) |
| Abstract: | In this study we explore in detail the causes of corruption in China using two different sets of data at the regional level (provinces and cities). We observe that regions with more anti-corruption efforts, histories of British rule, higher openness, more access to media and relatively higher wages of government employees are markedly less corrupt; while social heterogeneity, regulation, abundance of resource and state-owned enterprises substantially breed regional corruption. Moreover, fiscal decentralization is discovered to depress corruption significantly, while administrative decentralization fosters local corruption. We also find that there is currently a positive relationship between corruption and economic development in China that is mainly driven by the transition to a market economy. |
| Keywords: | Corruption; China; Government; Decentralization; Deterrence; Social Heterogenity |
| JEL: | D73 H11 K42 |
| Date: | 2010–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:qut:dpaper:257&r=soc |
| By: | Leslie N. Graham; Arjen van Witteloostuijn |
| Abstract: | In a field study of 128 middle-managers in similar roles but in different organizations within the UK public sector, we find that the quality of their leadermember exchange (LMX) relationship with their immediate supervisor is negatively related to the three dimensions of burnout. As hypothesized, LMX and communication frequency are found to interact in the prediction of emotional exhaustion. For low-quality LMX, the relationship between communication frequency and emotional exhaustion is positive with an increasingly steep upward slope as communication frequency increases. For high-quality LMX, the relationship is not as expected, but is curvilinear with an inverted U-shape. The findings support the importance of the social context of the workplace for the development and persistence of burnout. The results indicate that the quality of the relationship between employees and their manager in combination with the nature and the frequency of their interpersonal interactions are important factors for employee wellbeing. Furthermore, the study contributes to the literature on LMX by providing further support for the importance of LMX being dependent on how frequently employees and managers interact for a new and very important outcome of emotional exhaustion. |
| Keywords: | Leader-Member Exchange (LMX), Communication Frequency, Burnout |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1008&r=soc |
| By: | Choi, Jong-Seo; Kwak, Young-Min; Choe, Chongwoo |
| Abstract: | This paper studies the empirical relation between corporate social responsibility (CSR) and corporate financial performance in Korea using a sample of 1122 firm-years during 2002-2008. We measure corporate social responsibility by both an equal-weighted CSR index and a stakeholder-weighted CSR index suggested by Akpinar et al. (2008). Corporate financial performance is measured by ROE, ROA and Tobin’s Q. We find a positive and significant relation between corporate financial performance and the stakeholder-weighted CSR index, but not the equal-weighted CSR index. This finding is robust to alternative model specifications and several additional tests, providing evidence in support of instrumental stakeholder theory. |
| Keywords: | corporate social responsibility; corporate financial performance; KEJI index; instrumental stakeholder theory |
| JEL: | M14 D21 L21 G30 |
| Date: | 2010–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22159&r=soc |
| By: | Waddell, Glen R. (University of Oregon) |
| Abstract: | I consider the alcohol consumption of opposite-gender peers as explanatory to adolescent sexual intercourse and demonstrate that female sexual activity is higher where there is higher alcohol consumption among male peers. This relationship is robust to school fixed effects, cannot be explained by broader cohort effects or general anti-social behaviors in male peer groups, and is distinctly different from any influence of the alcohol consumption of female peers which is shown to have no influence on female sexual activity. There is no evidence that male sexual activity responds to female-peer alcohol consumption. |
| Keywords: | sex, alcohol, adolescent, peer, risky behavior |
| JEL: | J13 I12 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4880&r=soc |
| By: | Sib Ranjan, Misra; Jaydev, Misra |
| Abstract: | Japan has to restructure its social security systems fromtime to time for different reasons like a far more rapid aging of population , the slow down of long term economic growth and deteriorating equity in the inter-generational transfer of welfare .But even then, the basic elements remain the same .It si pertinent to see how and to whar extent japan’s social security systems could be translated in the case of India. As apreliminary analysis ,in section One, attempt has been made to summarize the distinctive features of social security systems in Japan.Section Two dwells upon the nature and problems of the social security systems in India. An endeavour has been made in Section three to articulate on the lessons for India. Final Section Four concludes and summarizes the main findings.It has ben observed that there are certain experiences that India can learn ,amongothers, the careful application of universal social security systems, the role of insurance policies,private-public synergies ,the role of the government and governance, the importance attached to social capital. |
| Keywords: | Universal social security system; private–public partnership; Inter-generational Equity governance; social capital |
| JEL: | H55 H41 E65 |
| Date: | 2009–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22076&r=soc |