More evidennce on altruism in a structured population
Altruists, Egoists, and Hooligans in a Local Interaction Model Ilan Eshel; Larry Samuelson; Avner Shaked
American Economic Review 1998 88:157-179
We study a population of agents, each of whomcan be an Altruist or an Egoist. Altruism is a strictly dominatedstrategy. Agents choose their actions by imitating others who earn highpayoffs. Interactions between agents are local, so that each agentaffects (and is affected by) only his neighbors. Altruists can survivein such a world if they are grouped together, so that the benefits ofaltruism are enjoyed primarily by other Altruists, who then earnrelatively high payoffs and are imitated. Altruists continue to survivein the presence of mutations that continually introduce Egoists intothe population.
Further evidence that primary schooling increases equality
reforms of primary schooling explains the decrease in brother correlations of income in Sweden, for cohorts born 1932 to 1968
http://ideas.repec.org/p/iza/izadps/dp3000.html
http://ideas.repec.org/p/iza/izadps/dp3000.html
When did Sweden become egalitarian? Further evidence
Taken from Lee, Soltow. 1989. "The Rich and the Destitute in Sweden, 1805-1855: A Test of Tocquevilles Inequality Hypotheses." Economic History Review 2-42:43-63.
Important quotes:
The groupwith positive savings increased steadily after 1840 in the rural sector.
Lowergroups benefited during the early stages of the industrial revolution.
Jorbergstresses the rise in agricultural yield after 1830
A government report issued in 1863also stressed the rise in canal traffic and an increase in the number ofsavings banks.
“Both thedestitute and the rich decreased in significance in the nineteenth century.Equality appears to have increased” (p. 53)
Institutions and Behavior
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Here's an interesting abstract:
We present results from a novel experiment on the effect of a policydesigned to encourage cooperation in a prisoner’s dilemma game. We find that the effect of this policy on the level of cooperation is greater when it was chosen democratically by the subjects than when it was exogenously imposed. This difference remains after controlling for selection (those thatchoose the policy may be more likely to be affected by it). We conclude that the treatment effect of policies may depend on whether they are endogenous or exogenous to the society on which they are imposed. Therefore,democratic institutions may have an effect on behavior in addition to the effect in terms of policy choice. More generally, our findings have implications for empirical studies of treatment effects in other contexts: the effect of a treatment may depend on whether it is endogenous or exogenous.
Embeddedness
A classic?
Granovetter, M. 1985. Economic Action and Social Structures: The Problem of Embeddedness. Americal Journal of Sociology 91(3): 481-510.
Granovetter, M. 1985. Economic Action and Social Structures: The Problem of Embeddedness. Americal Journal of Sociology 91(3): 481-510.
Why North was wrong, and the implications thereof
The standard definition of institutions:
The problem with this definition: Institutions are typically not designed, they have evolved, and they must be enforced somehow.
To think about: what does this mean for the validity of research regarding the effect of institutions on variable y?
“A set of rules, compliance procedures, and moral and ethical behavioral norms designed to constrain the behavior of individuals in the interests of maximizing the wealth or utility of principals” (p. 201)North, Douglass C. 1981, Structure and Change in Economic History. New York: Norton & Co.
The problem with this definition: Institutions are typically not designed, they have evolved, and they must be enforced somehow.
To think about: what does this mean for the validity of research regarding the effect of institutions on variable y?
confusing causalities
Many recent papers deal with correlations between two of the following:
Trust/social capital
growth
inequality
economic freedom
welfare state
Berggren, Niclas and Henrik Jordahl. 2005. "Does free trade really reduce growth? Further testing using the economic freedom index." Public Choice 122:99-114.
Berggren, Niclas och Jordahl, Henrik (2006). "Free to Trust: Economic Freedom and Social Capital." Kyklos, 59(2): 141-169.
Berggren, Niclas, Elinder, Mikael och Jordahl, Henrik (2007). "Trust and Growth: A Shaky Relationship." Empirical Economics
Jordahl & Gustavsson (2006) Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others (here)
Alesina, the determinants of Trust
Bjornskov, C. 2006. "The multiple facets of social capital." European Journal of Political Economy 22:22-40.
Kumlin, Staffan and Bo Rothstein. 2005. "Making and Breaking Social Capital: The Impact of Welfare-State Institutions." Comparative Political Studies 38:339-365.
more papers will be added...
This field need a unifying theory. Anyone?
Trust/social capital
growth
inequality
economic freedom
welfare state
Berggren, Niclas and Henrik Jordahl. 2005. "Does free trade really reduce growth? Further testing using the economic freedom index." Public Choice 122:99-114.
Berggren, Niclas och Jordahl, Henrik (2006). "Free to Trust: Economic Freedom and Social Capital." Kyklos, 59(2): 141-169.
Berggren, Niclas, Elinder, Mikael och Jordahl, Henrik (2007). "Trust and Growth: A Shaky Relationship." Empirical Economics
Jordahl & Gustavsson (2006) Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others (here)
Alesina, the determinants of Trust
Bjornskov, C. 2006. "The multiple facets of social capital." European Journal of Political Economy 22:22-40.
Kumlin, Staffan and Bo Rothstein. 2005. "Making and Breaking Social Capital: The Impact of Welfare-State Institutions." Comparative Political Studies 38:339-365.
more papers will be added...
This field need a unifying theory. Anyone?
Sources and data on inequality
In social policy and society, Grace Kelly has compiled a number of useful sources on equality and inequality, including websites with data.
Available here.
Available here.
Does anarchy generate order?
Very interesting debate at Cato unbound.