38 Pages Posted: 14 Apr 2002
Date Written: February 2002
We present a model incorporating both social and economic components, and analyze their interaction. We argue that such analysis is necessary for an understanding of the social arrangements that are consistent with underlying economic fundamentals. We introduce the notion of a social asset, an attribute that has value only because of the social arrangements governing society. We consider a generational matching model in which an attribute has value in some equilibrium social arrangements (matching patterns), but not in others. We then show that productive attributes (such as education) can have their value increased above their inherent productive value by some social arrangements, leading to the notion of the social value of an asset.
Note: An updated version of this abstract can be found at: http://ssrn.com/abstract=555769
Keywords: Social Assets, Social Capital, Social Arrangements, Nonmarket Interactions, Social Norms
JEL Classification: D20, D31, D5, J41, Z13
Suggested Citation: Suggested Citation