Social Capital and Community Governance

  title={Social Capital and Community Governance},
  author={Samuel Bowles and Herbert Gintis},
  journal={Wiley-Blackwell: Economic Journal},
Community governance is the set of small group social interactions that, with market and state, determine economic outcomes. We argue (i) community governance addresses some common market and state failures but typically relies on insider-outsider distinctions that may be morally repugnant and economically costly; (ii) the individual motivations supporting community governance are not captured by either selfishness or altruism; (iii) communities, markets and states are complements, not… 

Social Capital, Community Governance and Credit Market

Financial contracts represent an exchange of financial resources today, such as money, for a promise to return more financial resources tomorrow. The aim of the paper is to test whether cheating or

Governance efficiency with and without government

It is found that governance efficiency and capacity in the societies with State are lower when the government is partisan rather than when it is bipartisan, and society rankings for welfare and governance capacity are the same.

Social capital, rules, and institutions: A cross-country investigation

Research on the institutional foundations of economic development emphasizes either rulebound systems of exchange or informal bonds between individuals and within small groups. This corresponds to a

Social Capital and Collective Action in Environmental Governance Revisited

Since the 1990s, a growing number of authors have argued that social capital has positive effects in creating collective action and achieving favourable economic/political outcomes. However, in this

Social Capital, Network Governance and Social Innovation: Towards a New Paradigm?

The existence of a two-way connection between social capital and network governance has been identified in the literature. Social capital has been positively linked to the promotion of rural


This paper analyzes a heterogeneous-agents endogenous-growth model incorporating both transaction costs and social capital. An individual can either become an active part of the societyi¯s

Community and Economics

Community has a problematic relationship to economics. In general, contemporary political economics holds that groups have strongly negative effects on economic efficiency and growth, because groups



Incentives and Social Capital: Are Homeowners Better Citizens?

Individuals invest in their local environments by volunteering, getting involved in local government, becoming informed about their political leaders, joining non-professional organizations and even

An Economic Approach to Social Capital

To identify the determinants of social capital formation, it is necessary to understand the social capital investment decision of individuals. Individual social capital should then be aggregated to

Communities and Markets in Economic Development

This book explores the role of community in facilitating the transition to market relationships in economic development, and in controlling and sustaining local public goods such as irrigation,

Covenants with and without a Sword: Self-Governance Is Possible

Contemporary political theory often assumes that individuals cannot make credible commitments where substantial temptations exist to break them unless such commitments are enforced by an external

On the Empirics of Social Capital

This paper critically examines the way in which empirical evidence is developed in support of a role for social capital in socioeconomic outcomes. Three leading studies of social capital are reviewed

Local environmental control and institutional crowding-out.

Endogenous Preferences: The Cultural Consequences of Markets and other Economic Institutions

Drawing on experimental economics, anthropology, social psychology, sociology, history, the theory of cultural evolution as well as more conventional economic sources, I review models and evidence

Peer Pressure and Partnerships

Partnerships and profit sharing are often claimed to motivate workers by giving them a share of the pie. But in organizations of any significant size, the free-rider effects would seem to choke off

Group lending, repayment incentives and social collateral

Participation in Heterogeneous Communities

This paper studies what determines group formation and the degree of participation when the population is heterogeneous, both in terms of income and race or ethnicity. We are especially interested in