Collective Action

Question 1

What is CAP?

Answer 1

Mismatch between private and public incentives, leading to non pareto optimal outcome

Question 2

Types of CAP?

Answer 2

Tragedy of the commons (Hardin 1965)
Free riding
Externalities
Prisoners dilemma

Question 3

What is the Olsen Paradox? Year?

Answer 3

1965
Smaller groups lead to more collective action solving (eg free rider problem)
In larger groups, there is smaller perceived effect of individual defection

Question 4

CAP in INDIA

Answer 4

Alesina et al 1999: Ethnolinguistic fragmentation leads to access to public goods down (communities less able to work together)
Banjaree and Somanathan 2007: Scheme targetting equalisation of pub goods most successful for groups which were able to mobilize politically. (E.g. Muslims did not gain)

Question 5

CAP in AFGHANISTAN

Answer 5

Beath et al 2013
Aid targetting improved in villages after the creation of an elected council
But, when acting alongside historical leaders, rent seeking and embezzlement rose! (Distribution of power not clearly defined?)

Question 6

Ethnic diversity on social capital?

Answer 6

Alesina & Le Ferrarre (2000) in USA
More homogenous communities leads to more social interaction and so social capital.
Ethnic fragmentation bad?!

Question 7

Why might Ethnic fragmentation lead to worse outcomes?

Answer 7

Alesina et al 1999
Public good provision inversely related to ethnic fragmentation
More varied preferences leading to less pooled resources.
Potentially, less utility of pub good if it is shared (for racists)

Question 8

Nation building and CAP?

Answer 8

Miguel 2004 (Be aware this is a fairly limited study so more analysis probably required!) Kenya/ Tanzania
Kenya more tribally run, compared to Tanzania (national)
Kenya: 1996-02: Mean level of ethnic diversity compared to homogenous, 25% less funding per primary school student
Tanzania: no difference
Nation building was able to overcome tribal differences