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on Social Norms and Social Capital |
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Issue of 2017‒05‒21
eight papers chosen by Fabio Sabatini Università degli Studi di Roma “La Sapienza” |
| By: | James Andreoni |
| Abstract: | Theorists and policy analysts have convincingly argued that greater trust makes a more efficient society by eliminating costly contracts or expensive reputations. Concurrently, experiments suggest that reciprocity is a potent substitute for law when compliance with contracts is imperfectly enforced. This paper examines these issues within the context of a common trust-building contract device: satisfaction guaranteed. We find that satisfaction guaranteed indeed builds trust and improves efficiency. Interestingly, sellers offering a guarantee are more trustworthy than those who don't, even when honoring it is fully voluntary, but the guarantee only elicits the trust of buyers when it has legal backing. |
| JEL: | C92 D02 D4 K2 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23352&r=soc |
| By: | Musharraf Cyan (Department of Economics, Andrew Young School of Policy Studies, Georgia State University); Michael Price (Department of Economics, Andrew Young School of Policy Studies, Georgia State University); Mark Rider (Department of Economics, Andrew Young School of Policy Studies, Georgia State University) |
| Abstract: | The role of trust on economic growth and the efficiency of large organizations has been well documented in the literature. For example, LaPorta et al., (1997, 1999) provide evidence linking trust and the success of large organizations and the efficiency of government. A related body of work has explored the link between trust and growth (Knack and Keefer, 1997) and patterns of trade/investment flows amongst European nations (Guiseo, Sapienza, and Zingales, 2009). Taken in its totality, this body of work shows the central importance of trust on economic development and societal well-being. Intuitively, trust provides a means to facilitate economic activity as it reduces an important barrier to trade – the need to undertake costly efforts to learn about the trustworthiness of others (Zak and Knack, 2001). Empirical results provide mixed evidence on effectiveness of our messaging campaign. While the messages impact measures of trust, subjective well-being and perceptions about the quality of service delivery in KPK, there is no effect of the campaign on respondents in FATA. Importantly, however, such effects are more pronounced amongst those who have been exposed to conflict during the past year. Moreover, given prior work linking political trust to an individual’s confidence in government institutions as captured by perceptions of quality and performance (see, e.g., Hetherington, 2005; Newton, 2007; Hutchison and Johnson, 2015), the impact of our awareness campaign on reported satisfaction with civil service delivery and perceptions about the quality of the justice and governance systems is noteworthy and provides a necessary first step in rebuilding overall trust in the state. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1713&r=soc |
| By: | Meya, Johannes; Poutvaara, Panu; Schwager, Robert |
| Abstract: | We develop and test a theory of voting and turnout decisions that integrates self-interest, social preferences, and expressive motives. Our model implies that if pocketbook benefits are relevant, voters either perceive their impact on the outcome to be non-negligible, or expressive motivations do not play a role in the decision on how to vote. Conversely, if own pocketbook benefits do not explain voting, then voting is expressive. If the perceived probability of being pivotal is non-negligible, social preferences and expressive concerns are observationally equivalent. Our empirical analysis studies collective choices which are analogous to decisions on local public goods. We consider referenda among university students on whether to collectively purchase deeply discounted flat rate tickets for public transportation and cultural amenities. Individual us- age data allow quantifying the monetary benefits associated with each ticket. As voters had precise information on the individual costs and benefits, our setting comprises a real-world laboratory of direct democracy. We find that monetary benefits strongly influence participation and voting. However, social or expressive motives, such as stated altruism, environmental concerns, and paternalism, are decisive for a significant minority. Our results rule out purely expressive voting and imply that a substantial share of the electorate perceived their impact on the outcome to be non-negligible. |
| Keywords: | Pocketbook Voting,Social Preferences,Expressive Voting,Instrumental Voting,Public Goods,Altruism,Referendum |
| JEL: | D72 H41 D64 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:312&r=soc |
| By: | Raúl Serrano (University of Zaragoza); Isabel Acero-Fraile (University of Zaragoza); Natalia Dejo-Oricain (University of Zaragoza) |
| Abstract: | This paper examines if collaborative networks affect the export status and intensity in family firms. We suggest that the network effect is more relevant when the firm has low export intensity because when the firm is in the first stages of internationalization, networks are very useful to provide export resources and to solve common problems. However, this role becomes less relevant when firms show higher export intensity. For the empirical analysis, we use a dynamic Heckman-Probit model, using in the second stage a quantile regression model. |
| Keywords: | Family Firms; Networks; Internationalization; Export Intensity; Quantile regression |
| JEL: | F15 M21 N74 Q13 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:zar:wpaper:dt2017-04&r=soc |
| By: | Eiji Yamamura; Yoshiro Tsutsui; Fumio Ohtake |
| Abstract: | In Japan’s hometown tax donation system, people can donate to municipalities where they are not resident and in return receive reciprocal gifts from the local governments of those municipalities. A large part of the donated amount can be deducted from their income and residence taxes. This study examined altruistic and selfish motivations in donating money to municipalities where people are not resident through that donation system; we did so using panel data of local governments for 2008–2015. We made the following key findings. (1) The Great East Japan earthquake increased the amount of money donated through that system for local governments with disaster victims. We considered that motivation altruistic. (2) A 1% increase in expenditure for gifts to donors led to a 0.61% increase in donations. We considered that motivation selfish. (3) Compared with donors not receiving gifts, providing gifts to donors led to a reduction in altruistic donations by almost 300%. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1003&r=soc |
| By: | Musharraf Cyan (Department of Economics, Andrew Young School of Policy Studies, Georgia State University); Michael Price (Department of Economics, Andrew Young School of Policy Studies, Georgia State University); Mark Rider (Department of Economics, Andrew Young School of Policy Studies, Georgia State University) |
| Abstract: | The nature and quality of institutions are important determinants of economic growth. Yet, there is little consensus in the academic literature about exactly how institutions should be designed; how to move from a system of anachronistic or maladaptive institutions to a better set of institutions; and whether and how foreign donors can assist in this process. One policy that is often used by donors to encourage participatory democracy in low-income countries is “community driven development” (CDD). The United Nations defines community development as “a process where community members come together to take collective action and generate solutions to common problems.” Such institutions developed organically in the Anglo-Saxon world to meet exigent circumstances. Of course, Great Britain and its former colonies have a long history of participatory democracy and local government. One approach to the challenges facing the developing world is to foster such institutions in conditions that may have no tradition of participatory democracy or providing public goods through collective effort. As a result, many important public goods may be underprovided or not provided at all. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1710&r=soc |
| By: | Renato E. Reside, Jr. (School of Economics, University of the Philippines Diliman) |
| Abstract: | This study uses panel data on a sample of non-government organizations (NGOs) to estimate the factors that motivate donors to contribute to them. The results of empirical estimation suggest that a mix of conventional and tax factors influence donors. The results are consistent with the hypothesis that donors are not totally altruistic and are motivated by private benefits from donating. There is strong evidence that the private benefits come more from tax concessions from the act of donating. Hence, tax planning and arbitrage motives, more than “warm glow” factors influence donor contributions. |
| Keywords: | Nonprofit corporations; donations; altruism |
| JEL: | C80 D64 H26 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:phs:dpaper:201704&r=soc |
| By: | Jetter, Michael (University of Western Australia) |
| Abstract: | Can media coverage of a terrorist organization encourage their execution of further attacks? This paper analyzes the day-to-day news coverage of Al-Qaeda on US television since 9/11 and the group's terrorist strikes. To isolate causality, I use disaster deaths worldwide as an exogenous variation that crowds out Al-Qaeda coverage in an instrumental variable framework. The results suggest a positive and statistically powerful effect of CNN, NBC, CBS, and Fox News coverage on subsequent Al-Qaeda attacks. This result is robust to a battery of alternative estimations, extensions, and placebo regressions. One minute of Al-Qaeda coverage in a 30-minute news segment causes approximately one attack in the upcoming week, equivalent to 4.9 casualties, on average. |
| Keywords: | Al-Qaeda, media attention, media effects, terrorism, 9/11 |
| JEL: | C26 D74 F52 L82 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10708&r=soc |