SOCIAL CAPITAL, THE TERMS OF TRADE, AND THE DISTRIBUTION OF INCOME
Robert Myers () and
Marcelo E. Siles
No 11546, Staff Paper Series from Michigan State University, Department of Agricultural, Food, and Resource Economics
Social capital, a person or group's sympathy or sense of obligation for another person or group, assumes relationships can alter the terms of trade and the likelihood of trades between individuals. Other important economic consequences of social capital result from its ability to internalize externalities. This paper introduces social capital into the neoclassical model to derive forecasts of how relationships will alter the minimum-sell prices of farmland and the likelihood of trades between persons with different relationships. Also deduced in this paper is the effect of social capital on the level and dispersion of benefits from trade. Empirical evidence from a 1,500 farmland owner-operator survey is analyzed and provides support for the social capital paradigm.
Keywords: Institutional and Behavioral Economics; International Relations/Trade (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:midasp:11546
Access Statistics for this paper
More papers in Staff Paper Series from Michigan State University, Department of Agricultural, Food, and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().