Handbook of social economics. / Volume 1A

939 Pages·2011·11.221 MB·English

by  Jess Benhabib, Matthew O Jackson, Alberto Bisin

HANDBOOK OF
SOCIAL ECONOMICS
1A
VOLUME
INTRODUCTION TO THE SERIES
The aim of the Handbooks in Economics series is to produce Handbooks for various
branches of economics, each of which is a definitive source, reference, and teaching
supplement for use by professional researchers and advanced graduate students. Each
Handbook provides self-contained surveys of the current state of a branch of economics
in the form of chapters prepared by leading specialists on various aspects of this branch
of economics. These surveys summarize not only received results but also newer
developments, from recent journal articles and discussion papers. Some original material
is also included, but the main goal is to provide comprehensive and accessible surveys.
The Handbooks are intended to provide not only useful reference volumes for
professional collections but also possible supplementary readings for advanced courses
for graduate students in economics.
KENNETH J. ARROW and MICHAEL D. INTRILIGATOR
HANDBOOK OF
SOCIAL ECONOMICS
1A
VOLUME
Edited by
JESS BENHABIB
ALBERTO BISIN
MATTHEW O. JACKSON
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ISBN Vol1A:978-0-444-53187-2
ISBN Vol1B:978-0-444-53707-2
SETISBN:978-0-444-53713-3
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11 12 13 10 9 8 7 6 5 4 3 2 1
CONTENTS-VOLUME 1A
Contributors xv
Introduction xvii
Part I: Social Preferences
1. Nature and Nurture Effects On Children's Outcomes: What Have We Learned
From Studies of Twins And Adoptees? 1
Bruce Sacerdote
1. Introductionand Overview 2
2. TheBehavioral Genetics Model 5
3. CanonicalResults from theBehavioral Genetics Literature 8
4. Critiques andChallenges to Interpretation oftheBehavioral Genetics Results
on IQandSchooling 14
5. Treatment Effects andRegressionCoefficients 17
6. Results fromEconomics on Adoptees 19
7. PuttingIt All Together:What DoesIt Mean? 25
References 26
2. Social Norms and Preferences 31
Andrew Postlewaite
1. Introduction 32
2. TheSocial Determinants ofPreferences 35
3. ReducedForm Preferences:Social Concerns 40
4. WhyNotTake theIndirect Preferences as thePrimitive? 53
5. Examples Employing Instrumental Concern forRank 58
6. ConcludingRemarks 63
References 65
3. Preferences for Status: Evidence and Economic Implications 69
Ori Heffetz andRobert H.Frank
1. Introduction 70
2. FeaturesofStatus 72
3. Evidence 75
4. SomeEconomic Implications 84
5. Conclusion 88
References 89
v
vi Contents-Volume1A
4. Preferences for Redistribution 93
AlbertoAlesina andPaolaGiuliano
1. Introduction 94
2. Preferences forRedistribution: Theory 96
3. Empirical Evidence 103
4. Conclusions 127
References 129
5. Theories of Statistical Discrimination and Affirmative Action: A Survey 133
HanmingFangand AndreaMoro
1. Introduction 134
2. TheUseofGroup Averagesasa Proxy forRelevantVariables: theExogenous
DifferencesLiterature 137
3. Discriminatory Outcomesasa ResultofCoordination Failure 140
4. Discriminatory OutcomesDue to Inter-GroupInteractions 147
5. DynamicModels ofDiscrimination 162
6. Affirmative Action 163
7. Efficiency Implications ofStatisticalDiscrimination 191
8. Conclusion 195
References 197
6. Social Construction of Preferences: Advertising 201
JessBenhabib and AlbertoBisin
1. Introduction 202
2. TheBenchmark Economy 204
3. TheEquilibriumEffects ofAdvertising 206
4. TheEffects ofAdvertising in Empirical Work 211
5. Conclusions 218
References 219
7. The Evolutionary Foundations of Preferences 221
ArthurJ. Robson andLarry Samuelson
1. Introduction 222
2. Evolutionary Foundations 225
3. What SortofPreferences? 235
4. Preferences overWhat? 263
5. ConcludingRemark 297
6. Proofs 298
References 305
Contents-Volume1A vii
8. Social Norms 311
Mary A.Burkeand H.Peyton Young
1. Background 312
2. Norms, Customs, andConventions 313
3. Characteristic FeaturesofNorm Dynamics 314
4. Social Interactions andSocial Norms 317
5. AModel ofNorm Dynamics 318
6. Contractual Norms in Agriculture 321
7. Medical Treatment Norms 327
8. Body WeightNorms 331
9. ConcludingDiscussion 334
References 336
9. The Economics of Cultural Transmission and Socialization 339
AlbertoBisin and Thierry Verdier
1. Introduction 340
2. Theoretical Studies 342
3. Empirical Studies 371
4. Conclusions 407
References 407
10. Civic Capital as the Missing Link 417
LuigiGuiso, PaolaSapienza, and LuigiZingales
1. Introduction 418
2. Definitions ofSocial Capital 420
3. Accumulation andDepreciation ofCivic Capital 423
4. MeasuringCivic Capital 429
5. TheOrigins ofCivicCapital 459
6. TheEconomic Effects ofCivic Capital 467
7. Conclusions 476
References 477
11. Does Culture Matter? 481
RaquelFernández
1. Introduction 482
2. SomePreliminaries 483
3. TheEpidemiological Approach 489
4. TheEpidemiological Literature inEconomics 497
5. ConcludingQuestionsandRemarks 506
viii Contents-Volume1A
6. Acknowledgement 508
References 508
Part II: Social Actions
12. An Overview of Social Networks and Economic Applications 511
MatthewO. Jackson
1. Introduction 512
2. Social Networks and NetworkedMarkets 514
3. TheStructure ofSocial Networks 521
4. Network Formation 532
5. Modeling theImpact ofNetworks 550
6. Concluding Remarks 574
References 574
13. Local Interactions 587
Onur Özgür
1. Introduction 588
2. Static Models 589
3. Dynamic Models 618
4. Concluding Remarks 638
References 639
14. Diffusion, Strategic Interaction, and Social Structure 645
MatthewO. Jackson andLeeat Yariv
1. Introduction 646
2. Empirical Background:Social Networks andDiffusion 647
3. Models ofDiffusion andStrategic Interaction Absent Network Structure 653
4. Models ofDiffusion andStrategic Interaction in NetworkSettings 657
5. Closing Notes 674
References 675
15. Learning in Networks 679
SanjeevGoyal
1. Introduction 680
2. Nonstrategic Interaction 684
3. Strategic Interaction 704
4. Concluding Remarks 721
5. Appendix 723
References 724
Contents-Volume1A ix
16. Formation of Networks and Coalitions 729
FrancisBlochand Bhaskar Dutta
1. Introduction 730
2. One-StageModels ofCoalition andNetworkFormation 731
3. Sequential ModelsofCoalition and NetworkFormation 746
4. Farsightedness 754
5. Group Formationin RealTime 762
6. TheTension betweenEfficiency andStability 771
7. ConclusionsandOpen Problems 774
References 776
17. Matching, Allocation, and Exchange of Discrete Resources 781
Tayfun Sönmezand M. UtkuÜnver
1. Introduction 783
2. HouseAllocationand Exchange Models 786
3. KidneyExchange 801
4. SchoolAdmissions 821
5. AxiomaticMechanisms andMarket Design 837
6. ConcludingRemarks 844
References 848
Index-Volume1A I1
Index-Volume1B I41