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Social capital  then emerges in the form of expectations that others will reciprocate in response to co-operative initiatives; and it can spread through the community as more and more people  become aware of the advantages of cooperation.  
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==Index and Glossary==
There is an index to the topics dealt with in the economics articles [[Economics/Related Articles|here]], and a glossary of economic terms [[Economics/Glossary|here]].


whether or not co-operation takes root will
See also the [[Politics/Index|'''index to the politics articles ''']].
depend on the pre-existing set of social and political relations in the community and on
the degree of inequality and polarization suffered by society


The topic of the creation of social capital has since been explored at several levels. At the empirical level there have been a number of statistical analyses of the recently-collected data. One such study identified the factors affecting the development of trust as income per person, income distribution, government effectiveness, social cohesion and education
[[User:Nick_Gardner#Methodology|methodology]]
<ref> Paul Zak and Steven Knack: "Trust and Growth", ''Economic Journal'', April 2001</ref>.


A standard optimal investment model can be used to analyse an individual’s decision to accumulate
{|align="right" cellpadding="10" style="background-color:#FFFFCC; width:40%; border: 1px solid #aaa; margin:20px; font-size: 92%;"
social capital. We analyse six facts that support the predictions of this individualbased
|"''The European Union is something ...
approach: (1) social capital first rises and then falls with age, (2) social capital declines
very precious, not only for us in Europe, but also for the rest of the world. Because the European Union is, in fact, the result of a project for peace that brought together nations emerging from the ruins of the Second World War. It was the European Union that united them in peace around the values of respect for human dignity, freedom, democracy, justice, rule of law and respect for human rights.''"
with expected mobility, (3) social capital rises in occupations with greater returns to social
skills, (4) social capital is higher among homeowners, (5) social connections fall sharply with
physical distance, (6) people who invest in human capital also invest in social capital. We fail to
find robust evidence that social capital investments fall with the value of time or that geographic/
religious groups generate social capital complementarities<ref>[http://www.res.org.uk/economic/freearticles/nov2_02.pdf Edward Glaeser, David Laibson and Bruce Sacerdotum: "An Economic Approach to Social Capital", ''The Economic Journal'' November 2002]</ref>.


 
:Merci Olsson, of Nobel Med, congratulating President Barroso on the award of The Nobel Peace Prize t the European Union, 12 October 2012.
At a more abstract level, explanations of the development of mutual trust have been developed from [[game theory]] by means of experiments in the iterative application of the ''[[prisoners dilemma]]'' game. A one-shot prisoners development game is unlikely to lead to cooperation because it pays each player to defect, but computer simulations of  iterated prisoners dilemma games have demonstrated that simple tactics can be devised that lead to a cooperative outcome to the benefit of both players (although when played between humans, cooperation often fails to develop because players succumb to envy).
|}
Such an outcome is similar to what biologists term an ''[[evolutionary stable strategy]]'' because once it becomes a community's established strategy, attempts to depart from it are unlikely to succeed <ref> Robert Axelrod:''The Evolution of Cooperation'', (summarized by Richard Dawkins in chapter 12 of ''The Selfish Gene'', Oxford University Press, 1989</ref>). At a purely theoretical level a study by economic modeling has produced results that suggest that the development of mutual trust is a slow process that is best pursued gradually, and that it can be hampered by some otherwise productivity-enhancing changes of production methods <ref>[http://www.econ.ubc.ca/fpatrick/franzabofinal.pdf: Patrick Francois and  Jan Zabojnik  "Trust, Social Capital and Economic Development", ''Journal of the European Economic Association'', 2005]</ref> (providing a possible explanation of the difficulty of successfully transferring developed countries' production methods to developing countries).
 
.
Robert Axelrod, The Evolution of Cooperation (New York: Basic Books, 1984).
 
Humans are prone to cooperate, even with strangers. Thus many people cooperate in
anonymous one-shot PD games
 
http://econ.ucsd.edu/~jandreon/Econ264/papers/Marwell%20Ames%20JPubE%201981.pdf(Marwell and Ames, 1981), Gerald  Marwell,  and Ruth . Ames
1981 Economist Free Ride: Does Anyone Else? Journal of Public Economics
 
and often vote
altruistically
 
(http://www.issr.ucla.edu/sears/pubs/A090.pdf Sears and Funk, 1990)Sears, D.O. and C.L. Funk
1990 Self Interest in Americans' Political Opinions. In Beyond Self-Interest,
edited by J.J. Mansbridge, pp. 147-170. Chicago: University of Chicago Press..
 
 
People begin contributing substantially to public
goods sectors in economic experiments (Falk, et al., this volume; Kopelman, et al.,
this volume; (Ostrom, 1998). The experimental results accord with common
experience. Most of us have travel in foreign cities, even poor foreign cities filled
with strange people for whom our possessions and spending money are worth a small
fortune, and found risk of robbery and commercial chicanery to be small.
• Cooperation is contingent on many things. Not everyone cooperates. Aid to distressed
victims increases substantially if a potential altruist’s empathy is engaged (Batson,
1991). Being able to discuss a game beforehand, and to make promises to cooperate
affects success (Dawes, et al., 1990). The size of the resource, technology for
exclusion and exploitation of the resource and similar gritty details affect whether
cooperation in commons management arises (Ostrom, 1990: 202-204).
Ostrom, E.
1990 Governing the Commons: The Evolution of Institutions for Collective
Action. Cambridge: Cambridge University Press.
—
1998 A Behavioral Approach to the Rational Choice Theory of Collective
Action. American Political Science Review 92: 1-22. Scientific
findings again correspond well to personal experience. Sometimes we cooperate
enthusiastically, sometimes reluctantly, and sometimes not at all. People vary
considerably in their willingness to cooperate even under the same environmental
conditions.
• Institutions matter. People from different societies behave differently because their
habits have
 
http://www.nopecjournal.org/NOPEC_1996_a10.pdfFehr, E. and J.-R. Tyran
1996 Institutions and Reciprocal Fairness. Nordic Journal of Political Economy (punishment)
 
 
 
 
Social Capital: Explaining Its Origins and Effects on
Government Performance
CARLES BOIX AND DANIEL N. POSNER British Journal of Political Science (1998)
 
 
Ostrom, Elinor, 1990, Governing the Commons: The Evolution of Institutions for Collective
Action (Cambridge, Massachusetts: Cambridge University Press).
 
Darwin (1874:178-
179)Darwin, C.
1874 The Descent of Man and Selection in Relation to Sex. 2nd ed. 2 vols. New
York: American Home Library.
 
 
A tribe including many members who, from possessing in a high degree the spirit of patriotism, fidelity, obedience, courage,and sympathy, were always ready to aid one another, and to sacrifice themselves for the common good, would be victorious over most other tribes; and this would
be natural selection<ref>[http://www.gutenberg.org/cache/epub/2300/pg2300.html Charles Darwin: ''The Ascent of Man'', Chapter V, (first published 1874) Project Gutenberg]</ref>
 
thought, competed tribe against tribe as well as individually, and that the “social and
moral faculties” evolved under the influence of group competition:
It must not be forgotten that although a high standard of morality gives but slight
or no advantage to each individual man and his children over other men of the
tribe, yet that an increase in the number of well-endowed men and an
advancement in the standard of morality will certainly give an immense
advantage to one tribe over another.
 
 
<references/>

Latest revision as of 03:28, 22 November 2023


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Index and Glossary

There is an index to the topics dealt with in the economics articles here, and a glossary of economic terms here.

See also the index to the politics articles .

methodology

"The European Union is something ... 
very precious, not only for us in Europe, but also for the rest of the world. Because the European Union is, in fact, the result of a project for peace that brought together nations emerging from the ruins of the Second World War. It was the European Union that united them in peace around the values of respect for human dignity, freedom, democracy, justice, rule of law and respect for human rights."
Merci Olsson, of Nobel Med, congratulating President Barroso on the award of The Nobel Peace Prize t the European Union, 12 October 2012.
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