Social Preferences, Social Capital and Positional Concerns: Empirical Evidence from the South Caucasus
Revised Version of CERGE-EI Working Paper Series No. 625
52 Pages Posted: 25 Oct 2018 Last revised: 20 May 2019
Date Written: May 19, 2019
This paper aims to study the impact of positional concerns on social preferences and social capital. We utilize data from the “Caucasus Barometer” survey administered in three post-Soviet transition economies: Armenia, Azerbaijan, and Georgia. Controlling for absolute income and other individual and household characteristics, we find that the relative deprivation of a household has negative impacts on its members’ social preferences and social capital. In contrast, relative advantage has only positive influences on the variables of interest (if any).
Keywords: Positional Concern, Social Capital, Social Preferences, Public Good, Reference Group
JEL Classification: D60, D63, P30, Z13
Suggested Citation: Suggested Citation