In this issue we feature 12 current papers on the theme of social capital, chosen by Fabio Sabatini (Università degli Studi di Roma “La Sapienza”):

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1. The causal effect of trust - Bjorn Bartling; Ernst Fehr; David Huffman; Nick Netzer;
2. Connecting to Power: Political Connections, Innovation, and Firm Dynamics - Ufuk Akcigit; Salom? Baslandze; Francesca Lotti;
3. Religion, division of labor and conflict: Anti-semitism in Germany over 600 years - Sascha O. Becker; Luigi Pascali;
4. Social capital at venture capital firms and their financial performance: Evidence from China - Qi-lin Cao; Hua-yun Xiang; You-jia Mao; Ben-zhang Yang;
5. Knowing Me, Knowing You? Similarity to the CEO and Fund Managers' Investment Decisions - Jaspersen, Stefan; Limbach, Peter;
6. Prosociality, Political Identity, and Redistribution of Earned Income: Theory and Evidence - Sanjit Dhami; Emma Manifold; Ali al-Nowaihi;
7. Reasons for unmet needs for health care: the role of social capital and social support in some Western EU countries
      Fiorillo, D.;
8. Where to look for the morals in markets? Matthias Sutter; Juergen Huber; Michael Kirchler; Matthias Stefan; Markus
       Walzl;
9. Ctrl+C Ctrl+pay: Do people mirror payment behaviour of their peers Carin van der Cruijsen; Joris Knoben
10. Gender Norms and Intimate Partner Violence - Libertad Gonzalez; Neria Rodr?guez-Planas;
11. Social Image or Social Norm?: Re-examining the Audience Effect in Dictator Game Experiments - Chulyoung Kim; Sang-Hyun Kim;
12. Trust in Leadership and Affective Commitment as a Mediator between Servant Leadership Behavior and Extra-Role Behavior of Teachers - Titik Rosnani

  1. The causal effect of trust - Bjorn Bartling; Ernst Fehr; David Huffman; Nick Netzer

  Trust affects almost all human relationships ? in families, organizations,
  markets and politics. However, identifying the conditions under which trust,
  defined as people's beliefs in the trustworthiness of others, has a causal
  effect on the efficiency of human interactions has proven to be difficult.
  We show experimentally and theoretically that trust indeed has a causal
  effect. The duration of the effect depends, however, on whether initial
  trust variations are supported by multiple equilibria. We study a repeated
  principal-agent game with multiple equilibria and document empirically that
  an efficient equilibrium is selected if principals believe that agents are
  trustworthy, while players coordinate on an inefficient equilibrium if
  principals believe that agents are untrustworthy. Yet, if we change the
  institutional environment such that there is a unique equilibrium, initial
  variations in trust have short-run effects only. Moreover, if we weaken
  contract enforcement in the latter environment, exogenous variations in
  trust do not even have a short-run effect. The institutional environment
  thus appears to be key for whether trust has causal effects and whether the
  effects are transient or persistent.
   JEL: C91 D02 D91 E02
   Keywords: Trust, causality, equilibrium selection, belief distortions,
    incomplete contracts, screening, institutions
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:zur:econwp:304&r=soc

 2. Connecting to Power: Political Connections, Innovation, and Firm Dynamics -
   Ufuk Akcigit; Salom? Baslandze; Francesca Lotti

  Do political connections affect firm dynamics, innovation, and creative
  destruction? We study Italian firms and their workers to answer this
  question. Our analysis uses a brand-new dataset, spanning the period from
  1993 to 2014, where we merge: (i) firm-level balance sheet data; (ii) social
  security data on the universe of workers; (iii) patent data from the
  European Patent Office; (iv) the national registry of local politicians; and
  (v) detailed data on local elections in Italy. We find that firm-level
  political connections are widespread, especially among large firms, and that
  industries with a larger share of politically connected firms feature worse
  firm dynamics. We identify a leadership paradox: When compared to their
  competitors, market leaders are much more likely to be politically
  connected, but much less likely to innovate. In addition, political
  connections relate to a higher rate of survival, as well as growth in
  employment and revenue, but not in productivity ? a result that we also
  confirm using a regression discontinuity design. We build a firm dynamics
  model, where we allow firms to invest in innovation and/or political
  connection to advance their productivity and to overcome certain market
  frictions. Our model highlights a new interaction between static gains and
  dynamic losses from rent-seeking in aggregate productivity.
   JEL: D70 O3 O4
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:25136&r=soc

 3. Religion, division of labor and conflict: Anti-semitism in Germany over
600 years - Sascha O. Becker; Luigi Pascali

  We study the role of economic incentives in shaping the co-existence of
  Jews, Catholics and Protestants, using novel data from Germany for 1,000+
  cities. The Catholic usury ban and higher literacy rates gave Jews a
  specific advantage in the moneylending sector. Following the Protestant
  Reformation (1517), the Jews lost these advantages in regions that became
  Protestant. We show 1) a change in the geography of anti-Semitism with
  persecutions of Jews and anti-Jewish publications becoming more common in
  Protestant areas relative to Catholic areas; 2) a more pronounced change in
  cities where Jews had already established themselves as moneylenders. These
  findings are consistent with the interpretation that, following the
  Protestant Reformation, Jews living in Protestant regions were exposed to
  competition with the Christian majority, especially in moneylending, leading
  to an increase in anti-Semitism.
   JEL: Z12 O18 N33 N93 D73
   Keywords: Anti-semitism, religion, conflict, division of labor
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:upf:upfgen:1619&r=soc

 4. Social capital at venture capital firms and their financial performance:
Evidence from China - Qi-lin Cao; Hua-yun Xiang; You-jia Mao; Ben-zhang Yang

  This paper studies the extent to which social capital drives performance in
  the Chinese venture capital market and explores the trend toward VC
  syndication in China. First, we propose a hybrid model based on syndicated
  social networks and the latent-variable model, which describes the social
  capital at venture capital firms and builds relationships between social
  capital and performance at VC firms. Then, we build three hypotheses about
  the relationships and test the hypotheses using our proposed model. Some
  numerical simulations are given to support the test results. Finally, we
  show that the correlations between social capital and financial performance
  at venture capital firms are weak in China and find that China's venture
  capital firms lack mature social capital links.
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:arx:papers:1810.02952&r=soc

 5. Knowing Me, Knowing You? Similarity to the CEO and Fund Managers'
     Investment Decisions - Jaspersen, Stefan; Limbach, Peter

  This study provides evidence that investors? demographic similarity to CEOs
  affects their investment decisions. We find that mutual fund managers
  overweight firms led by CEOs who resemble them in terms of age, ethnicity
  and gender. This finding is robust to excluding educational and local ties
  and is supported by variation in similarity caused by CEO departures.
  Investing in firms run by similar CEOs, on average, is associated with
  superior performance and is more pronounced when CEOs have more impact on
  their firms. Results suggest that demographic similarity to CEOs facilitates
  informed trading, implying that investors? information production
  incorporates firm management.
   JEL: G11 G23 J10
   Keywords: CEO-investor similarity,familiarity bias,information
    advantages,investment decisions,mutual fund performance
   Date: 2018
 URL: http://d.repec.org/n?u=RePEc:zbw:vfsc18:181501&r=soc

 6. Prosociality, Political Identity, and Redistribution of Earned Income:
     Theory and Evidence - Sanjit Dhami; Emma Manifold; Ali al-Nowaihi

  We explore the relation between social political identity and prosociality.
  We first construct a theoretical model to generate predictions for the
  behavior of players in an ultimatum game who are influenced by social
  political identity. Then we use a novel subject pool-registered members of
  British political parties - to play the ultimatum game, and test our
  predictions. Incomes can either be unearned and untaxed (Treatment 1) or
  earned, taxed, and redistributed (Treatment 2). We find that the choices of
  the proposers and the responders are consistent with social identity theory
  (higher offers and lower minimum acceptable offers to ingroup members)
  although proposers show quantitatively stronger social identity effects.
  Moving from Treatment 1 to Treatment 2, offers by proposers decline and the
  minimum acceptable offers by responders (both as a proportion of income)
  also decline by almost the same amount, suggesting shared understanding that
  is characteristic of social norms.
   JEL: D01 D03
   Keywords: social identity, prosocial behavior, ultimatum game, fiscal
    redistribution, entitlements
   Date: 2018
 URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_7256&r=soc

 7. Reasons for unmet needs for health care: the role of social capital
     and social support in some Western EU countries - Fiorillo, D.;

  This paper focuses on the demand side factors that determine access to
  health care and analyses the issues of unmet needs for health care and the
  reasons thereof in western EU countries. A probit model is estimated from a
  sample of the whole population, accounting for the possibility of individual
  selection in unmet needs for health care (UN) (selection equation). Expanded
  probit models (including the inverse Mills ratio) are then used on the
  reasons for unmet needs (RUN) with social capital and social support as
  determinants and using the European Union Statistics on Income and Living
  Conditions (EU-SILC) dataset carried out in 2006. In RUN equations, the
  findings show that females, large households, people with low income and
  financial constraints, the unemployed and those in poor health have a higher
  probability of declaring unmet needs due to economic costs. Additionally,
  people in tertiary education, those with high income and the employed have a
  higher probability of not visiting a doctor when needed due to time
  availability. Furthermore, the frequency of contact with friends and the
  ability to ask for help are correlated with a lower probability of unmet
  needs due to economic costs, while the frequency of contact with relatives
  is related with a lower probability of unmet needs due to time availability
  and distance. However, the ability to ask for help is also correlated with a
  higher probability of not having medical care due to time availability and
  the wait-and-see-approach.
   JEL: C35 I12 I18 Z1
   Keywords: unmet needs for healthcare; reasons for unmet needs; social
    capital; social support; EU Western countries; EU-SILC data; Heckman
    selection model;
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:yor:hectdg:18/29&r=soc

 8. Where to look for the morals in markets? Matthias Sutter; Juergen Huber;
Michael Kirchler; Matthias Stefan; Markus Walzl

  There is a heated debate on whether markets erode social responsibility and
  moral behavior. However, it is a challenging task to identify and measure
  moral behavior in markets. Based on a theoretical model, we examine in an
  experiment the relation between trading volume, prices and moral behavior by
  setting up markets that either impose a negative externality on third
  parties or not. We find that moral behavior reveals itself in lower trading
  volume in markets with an externality, and in prices depending on the market
  structure. We further investigate individual characteristics that explain
  trading behavior in markets with externalities.
   JEL: C92 D03 D62
   Keywords: Morals, Markets, Competition, Experiment
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:inn:wpaper:2018-18&r=soc

 9. Ctrl+C Ctrl+pay: Do people mirror payment behaviour of their peers?
   Carin van der Cruijsen; Joris Knoben

  For stakeholders in the payment system seeking to influence the usage of
  specific payment instruments, it is important to know what drives consumers'
  choice of payment instrument. However, little is known about how the social
  environment influences payment behaviour. This study fills this gap by
  researching the relevance of peer effects for payment behaviour. We used the
  detailed payment diary data of Dutch consumers. Our findings show that
  payment behaviour is strongly influenced by the environment that people live
  in, especially when the environment is characterised by strong social
  cohesion. Hence, our study offers new insights into the diffusion of payment
  behaviour.
   JEL: A14 D12 D14 E42 E58 Z13
   Keywords: payment diaries; payment behaviour; peer effects; consumer survey
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:dnb:dnbwpp:611&r=soc

10. Gender Norms and Intimate Partner Violence
   Libertad Gonz?lez; N?ria Rodr?guez-Planas

  We study the effect of social gender norms on the incidence of domestic
  violence. We use data for 28 European countries from the 2012 European
  survey on violence against women, and focus on first and second generation
  immigrant women. We find that, after controlling for country of residence
  fixed effects, as well as demographic characteristics and other
  source-country variables, higher gender equality in the country of ancestry
  is significantly associated with a lower risk of victimization in the host
  country. This suggests that gender norms may play an important role in
  explaining the incidence of intimate partner violence.
   JEL: I1 J6 D1
   Keywords: domestic violence, gender, Social Norms, immigrants,
    epidemiological approach
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:bge:wpaper:1061&r=soc

11. Social Image or Social Norm?: Re-examining the Audience Effect in
     Dictator Game Experiments - Chulyoung Kim (Yonsei University);
Sang-Hyun Kim (Yonsei University)

  Andreoni and Bernheim (2009) considers a variant of the dictator game in
  which an exogenous force, called "nature", overturns the dictator's decision
  with some known probability. They find that as the likelihood of nature's
  intervention increased, more subjects mimicked the nature's move. We
  replicate their experiment, and examine a new treatment in which the
  dictator's decision is revealed to the recipient even when the dictator
  mimics nature's move. We find that (i) many dictators' decisions were
  affected by nature's intervention even when their choice was observed by the
  recipient, which suggests that the intervention altered not only the
  incentive to signal one's fair-mindedness but also the perception of
  appropriate action, but (ii) still dictators' behavior under the two
  treatments differed significantly, which suggests that the audience effect
  also matters greatly in AB's and our experiments.
   Keywords: Social image, Social norm, Dictator game, Altruism
   Date: 2018?10
 URL: http://d.repec.org/n?u=RePEc:yon:wpaper:2018rwp-134&r=soc

12. Trust in Leadership and Affective Commitment as a Mediator between
     Servant Leadership Behavior and Extra-Role Behavior of Teachers
   Titik Rosnani (Universitas Tanjungpura Pontianak, West Kalimantan,
    Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name:
    Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name:
    Author-5-Name: Author-5-Workplace-Name: Author-6-Name:
    Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name:
    Author-8-Name: Author-8-Workplace-Name:)

  Objective - The purpose of this study is to investigate the relationship
  between trust in the leader and affective commitment as a mediator between
  servant leadership behavior and extra-role behavior. In addition, the study
  examines, whether person-organization fit has a moderating effect.
  Methodology/Technique - In total, 250 teachers of the border area responded
  to the research questionnaires, which were then analyzed using structural
  equation modeling with a partial least squares approach. Findings - The
  outputs of this study indicate an indirect influence between the principal
  servant leadership behaviors and extra-role behaviors among teachers, which
  was mediated by trust in the principal and the teacher's affective
  commitment to the principal. Furthermore, the results show a significant and
  direct relationship between servant leadership behaviors towards trust in
  the principal, affective commitment, and extra-role behaviors. Trust in the
  principal and teacher's affective commitment also had a significant and
  direct effect on extra-role behavior. However, the person-organization fit
  which moderates the effect of servant leadership behaviors on extra-role
  behaviors did not have a significant or direct effect on extra-role
  behaviors, in fact, it actually weakened the influence of servant leadership
  behaviors on extra-role behaviors. Novelty - The findings of this study
  suggest that trust in the principal and teacher's affective commitment has
  an important moderating effect which must be managed to strengthen the
  relationship between servant leadership behaviors and extra-role behaviors.
   JEL: M10 M11 M19
   Keywords: Affective Commitment; Extra-role Behavior; Person- organization
    Fit; Servant Leadership Behavior; Trust in Leader.
   Date: 2018?09?27
 URL: http://d.repec.org/n?u=RePEc:gtr:gatrjs:jmmr192&r=soc
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