Social Structure, State, and Economic Activity

Yann Bramoull´e, Sanjeev Goyal and Massimo Morelli

No 25242, BAFFI CAREFIN Working Papers from BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy

Abstract: Most societies in the world contain strong group identities and the culture supporting these groups is highly persistent. This persistence in turn gives rise to a practical problem: how do and should societies with strong group identities organize themselves for exchange and public good provision? In this paper, we develop a theoretical framework that allows us to study, normatively and positively, the relationship between social structure, state capacity, and economic activity.

Pages: 57
Date: 2025
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