TRUST,SOCIAL CAPITAL,AND ECONOMIC DEVELOPMENT

Many argue that elements of a society's norms, culture, or social capital are central to understanding its development. However, these notions have been difficult to capture in economic models. Here we explore a possible role for “trustworthiness” as corresponding to social capital. Individuals are trustworthy when they perform in accordance with promises, even if this does not maximise their payoffs. The usual focus on incentive structures in motivating behaviour plays no role here. Instead, we emphasise more deep‐seated modes of behaviour and consider trustworthy agents being socialised to act as they do. To model this socialisation, we borrow from a process of preference evolution pioneered by Bisin and Verdier (2001). The model developed endogenously accounts for social capital and explores its role in the process of economic development. It captures in a simple, formal way the interaction between social capital and the economy's productive processes. The results obtained caution against rapid reform and provide an explanation for why late‐developing countries may not easily be able to transplant the modes of production that have proved useful in the West. (JEL: O1, O3, O4, Z1)     

Organisational Learning and Governance Through Embedded Practices

This article has two principal aims. The first is to reconcile thecompetence based approach to the firm with traditional contractualapproaches, instead of treating them as incompatible. The mainthesis advanced is that firms manage simultaneously competencesand transactions, but they do so in accordance with a specificlexicographic order of priorities. The second aim is to explorein detail the sources of knowledge formation in the firm. Theanalysis privileges anthropological readings which stress the roleof learning – both radical and incremental – within distributed communities of practice.     

Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem?

We construct a quantitative equilibrium model with firms setting prices in a staggered fashion and use it to ask whether monetary shocks can generate business cycle fluctuations. These fluctuations include persistent movements in output along with the other defining features of business cycles, like volatile investment and smooth consumption. We assume that prices are exogenously sticky for a short time. Persistent output fluctuations require endogenous price stickiness in the sense that firms choose not to change prices much when they can do so. We find that for a wide range of parameter values, the amount of endogenous stickiness is small. Thus, we find that in a standard quantitative model, staggered price‐setting, alone, does not generate business cycle fluctuations.     

The De/Repoliticization of Cooperation and the Discourse of Conversion1

Abstract In recent years, several agricultural cooperatives have undergone significant restructuring. Some have been taken through a conversion process and have been reorganized as “investor-oriented firms” (IOFs). This phenomenon has attracted the interest of agricultural economists, but it has not been analyzed by sociologists. This article examines the discourse with which agricultural economists have approached the conversion issue. Drawing upon Fraser's discussion of “needs talk,” and inspired by Kloppenburg's analysis of the agricultural scientific complex, an argument is made that a reprivatization discourse of neoclassical economics has effectively depoliticized discussion about the future of cooperative enterprise. It is further argued that a repoliticization of cooperation is necessary in order to assure the protection of extra-economic values and oppositional discourse that is embedded in the historical development of cooperative practices and institutions. We focus here on the role of expert discourse as it relates to the reinvention of cooperative institutions in the agricultural economy. It is argued that this discourse would be improved by greater attention to historical and sociological forces, rather than remaining narrowly focused on economism.     

What is to be done about unemployment?

The rate of unemployment in Britain has been rising, and will doubtless continue to rise for the foreseeable future. On present trends any significant fall in the rate of unemployment appears improbable. We face the prospect of unemployment in the 1980s as severe as that experienced in the 1930s when only at its worst did the rate rise to the equivalent of nearly four million in today's terms. Against this background it is natural to despair of solutions. Certainly we cannot provide a policy which will produce an immediate return to ‘full employment’. but there are opportunities available for appreciably improving employment prospects. Particular policies are discussed and recommended in this paper, and the initiative has to be taken now.     

Lorenz non-consistent welfare and inequality measurement

Typical welfare and inequality measures are required to be Lorenz consistent which guarantees that inequality decreases and welfare increases as a result of a progressive transfer. We explore the implications for welfare and inequality measurement of substituting the weaker absolute differentials and deprivation quasi-orderings for the Lorenz quasi-ordering. Restricting attention to distributions of equal means, we show that the utilitarian model – the so-called expected utility model in the theory of risk – does not permit one to make a distinction between the views embedded in the differentials, deprivation and Lorenz quasi-orderings. In contrast it is possible within the dual model of M. Yaari (Econometrica 55 (1987), 99–115) to derive the restrictions to be placed on the weighting function which guarantee that the corresponding welfare orderings are consistent with the differentials and deprivation quasi-orderings respectively. Finally we drop the equal mean condition and indicate the implications of our approach for the absolute ethical inequality indices.     

Simulation for the complex Bingham distribution

The complex Bingham distribution is relevant for the shape analysis of landmark data in two dimensions. In this paper it is shown that the problem of simulating from this distribution reduces to simulation from a truncated multivariate exponential distribution. Several simulation methods are described and their efficiencies are compared.     

An attribution model of public discrimination towards persons with mental illness

In this study, we build on previous work by developing and estimating a model of the relationships between causal attributions (e.g., controllability, responsibility), familiarity with mental illness, dangerousness, emotional responses (e.g., pity, anger, fear), and helping and rejecting responses. Using survey data containing responses to hypothetical vignettes, we examine these relationships in a sample of 518 community college students. Consistent with attribution theory, causal attributions affect beliefs about persons' responsibility for causing their condition, beliefs which in turn lead to affective reactions, resulting in rejecting responses such as avoidance, coercion, segregation, and withholding help. However, consistent with a danger appraisal hypothesis, the effects of perceptions of dangerousness on helping and rejecting responses are unmediated by responsibility beliefs. Much of the dangerousness effects operate by increasing fear, a particularly strong predictor of support for coercive treatment. The results from this study also suggest that familiarity with mental illness reduces discriminatory responses.     

Courage in the Telling: The Critical Rise and Fall of David Leavitt

Openly gay American fiction writer David Leavitt, who had received positive reviews for his previous novels and short story collections, was sued in 1993 over his novel While England Sleeps by English poet Stephen Spender, who claimed that Leavitt plagiarized an episode from his own 1951 memoir World Within World, and grafted pornographic fantasies onto his biography. The accusations created a homophobic backlash against Leavitt, whose career has yet to recover fully. The result is that Leavitt, who had once been viewed as the one gay writer to find a footing in the mainstream literary community, is now firmly positioned in the gay literary subgenre and his work categorized as such. This essay examines book reviews in order to illustrate the difficulties that a writer who deals with gay life frankly and unapologetically finds in being accepted by the mainstream literary establishment, no matter how normal or assimilationist he or others might perceive his work to be.