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The Political Economy of Trust Henry Farrell (George Washington University, Washington DC)

The Political Economy of Trust By Henry Farrell (George Washington University, Washington DC)

The Political Economy of Trust by Henry Farrell (George Washington University, Washington DC)

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Summary

Trust and cooperation are at the heart of the two most important approaches to comparative politics - rational choice and political culture. Yet we know little about trust's relationship to political institutions. This book sets out a rationalist theory of how institutions - especially informal institutions - can affect trust without reducing it to fully determine expectations.

The Political Economy of Trust Summary

The Political Economy of Trust: Institutions, Interests, and Inter-Firm Cooperation in Italy and Germany by Henry Farrell (George Washington University, Washington DC)

Trust and cooperation are at the heart of the two most important approaches to comparative politics - rational choice and political culture. Yet we know little about trust's relationship to political institutions. This book sets out a rationalist theory of how institutions - and in particular informal institutions - can affect trust without reducing it to fully determine expectations. It then shows how this theory can be applied to comparative political economy, and in particular to explaining inter-firm cooperation in industrial districts, geographical areas of intense small firm collaboration. The book compares trust and cooperation in two prominent districts in the literature, one in Emilia Romagna, Italy, and the other in Baden-Wurttemberg, Germany. It also sets out and applies a theory of how national informal institutions may change as a result of changes in global markets, and shows how similar mechanisms may explain persistent distrust too among Sicilian Mafiosi.

The Political Economy of Trust Reviews

Farrell's The Political Economy of Trust is a tour de force. His book takes us through the burgeoning literature on social trust, social capital, institutions, and networks. Farrell has done us a service by clearly distinguishing among these terms, carefully carving out a distinct analytical space for each concept, and identifying their respective explanatory purchase. One of his main goals is to show that the concept of trust provides a deeper understanding of cooperation than institutions by themselves. He succeeds brilliantly. Farrell's masterful treatment of the literatures on social capital, culture, and rational choice approaches to institutions provides us with a more complete picture of the causes and consequences of institutions. His case studies of firms in Emilia Romagna, Italy and Baden-Wuerttemberg, Germany, along with his final chapter on the Mafia in Sicily provide the ideal material to illustrate his complex ideas and demonstrate their empirical grounding. -James A. Caporaso, University of Washington
Henry Farrell's important book is a crucial contribution to the literature on social trust, and will be particularly influential among those seeking to understand the roots of coordinated market arrangements in advanced political economies. Boldly bridging the divide between rational-choice microfoundations and institutionalist macro-theorizing, while also bringing in culturalist perspectives, Farrell shows how trust can be grounded in informal institutions that were created for quite different reasons than the production or sustenance of cooperation. In doing so, he provides a powerful new way of understanding the role of trust in social, political, and economic life. -Jacob S. Hacker, Yale University

About Henry Farrell (George Washington University, Washington DC)

Henry Farrell has been Assistant Professor of Political Science and International Relations at the George Washington University since 2004, where he is affiliated with the Center for International Science and Technology Policy. Previously he was Assistant Professor at the University of Toronto from 2002-2004, and Senior Research Fellow at the Max-Planck Project Group on the Law of Common Goods in Bonn, Germany from 2000-2002. Professor Farrell has authored or co-authored eighteen peer reviewed articles for journals including International Organization and Comparative Political Studies and nine chapters for edited volumes. His non-academic publications include articles for Foreign Policy, the Financial Times, the Boston Review, the Chronicle of Higher Education, and The Nation and a policy paper for the German Marshall Fund.

Table of Contents

Acknowledgments; 1. Introduction; 2. A theory of institutions and trust; 3. Varieties of capitalism and industrial districts; 4. Trust and institutions in industrial districts; 5. Accounting for change in informal institutions; 6. Informal institutions without trust: relations among Mafiosi in Sicily; 7. Conclusions; Bibliography; Index.

Additional information

NPB9780521886499
9780521886499
052188649X
The Political Economy of Trust: Institutions, Interests, and Inter-Firm Cooperation in Italy and Germany by Henry Farrell (George Washington University, Washington DC)
Henry Farrell (George Washington University, Washington DC)
Cambridge Studies in Comparative Politics
New
Hardback
Cambridge University Press
2009-08-24
256
N/A
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