Social Ties and Economic Performance / Edition 1

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This volume focuses on the social impact of the public sector on the performance of the private sector, especially in the long term. It presents a model of the formation of social ties by economic interaction and uses this to explore the relevance of social ties and their dynamics for economic performance.
The impact of public provision and stochastic migration on social ties and the (total) provision level of the public good are also examined. It discusses the role of social ties in other types of interaction, and proposes definitions of social capital and infrastructure. Furthermore, it contains a discussion of the connections between the different conceptions of these terms. Also the effects of social ties and the influence of different types of public intervention on growth are examined. The assumption of exogenously determined, stochastic migration is dropped, and migration behavior is analyzed explicitly. In this theoretical investigation of the dynamics of social ties and economic interaction a number of important effects on economic performance will be suggested.
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Product Details

  • ISBN-13: 9780792398363
  • Publisher: Springer US
  • Publication date: 12/31/1996
  • Series: Theory and Decision Library C Series , #14
  • Edition description: 1997
  • Edition number: 1
  • Pages: 224
  • Product dimensions: 9.21 (w) x 6.14 (h) x 0.56 (d)

Table of Contents

1 Introduction 1
1.1 Economic performance and the social environment of production 1
1.2 Concepts of social capital and infrastructure 4
1.3 Economic models and social ties 6
1.4 Approach and scope of the book 8
1.5 Outline of the book 12
2 Dynamics of Social Ties and Local Public Good Provision 13
2.2 Impact of social ties on the private provision of a public good 17
2.3 Formation of social ties 21
2.4 Private provision 25
2.5 Private and public provision 29
2.6 Influence of mobility 34
2.7 Some extensions 40
2.8 Concluding remarks 45
3 Social Capital and Social Infrastructure 57
3.2 Impact of social ties on types of interaction 60
3.3 Other sources of benevolence and 'as-if' benevolence 78
3.4 Definition and social capital and social infrastructure 82
4 Social Determinants of Economic Growth 91
4.2 Set-up of the economy 96
4.3 Public provision: extension of the Barro-model 97
4.4 Private provision of the public good by consumers 101
4.5 Private and public provision of the public good 109
4.6 National and local public goods 115
4.7 Transaction costs and social infrastructure 117
4.8 Public intervention in the context of transaction costs 120
4.9 Migration 125
4.10 Concluding remarks 126
5 Migration and Social Ties 135
5.2 Relevance of social ties for migration decisions 139
5.3 Dynamics of social ties 141
5.4 Economic framework and migration patterns 146
5.5 Migration decisions 148
5.6 Migration decisions in case of differences in skills 157
5.7 International migration 170
5.8 Concluding remarks 173
6 Conclusions and Policy Implications 181
6.1 Summary of results 181
6.2 Validity of the models 184
6.3 Policy implications 189
References 195
Author Index 203
Subject Index 207
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