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A theory of cooperation through social division, with evidence from Nepal
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Choy, James (2013) A theory of cooperation through social division, with evidence from Nepal. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2013 (Number 116).
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Text (Working paper)
WRAP_115.2013_choy.pdf - Published Version Download (797Kb) | Preview |
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
Informal, kin-based groups play an important role in developing country economies. I point out two facts:
communities are divided into smaller groups, and many groups prohibit interactions with outsiders. These
facts are rationalized in a model in which division of the community into non-interacting groups allows agents
to support higher levels of cooperation. Group segregation is sustained in equilibrium through a reputation
effect. I test the empirical implication that there should be less cooperation between members of groups that
make up a larger percentage of their communities. I discuss implications for underinvestment in education,
misallocation of resources, and institutional change.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
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Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HT Communities. Classes. Races |
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Divisions: | Faculty of Social Sciences > Economics | ||||
Library of Congress Subject Headings (LCSH): | Caste -- Nepal, Developing countries -- Economic conditions, Cooperation -- Nepal | ||||
Series Name: | CAGE Online Working Paper Series | ||||
Publisher: | Department of Economics, University of Warwick | ||||
Place of Publication: | Coventry, UK | ||||
Official Date: | 2013 | ||||
Dates: |
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Volume: | Volume 2013 | ||||
Number: | Number 116 | ||||
Number of Pages: | 42 | ||||
Institution: | University of Warwick | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Open Access (Creative Commons) | ||||
Date of first compliant deposit: | 1 August 2016 | ||||
Date of first compliant Open Access: | 1 August 2016 | ||||
Funder: | Yale University. Economic Growth Center |
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