This paper studies how market-supporting institutions affect non-market and market exchange. We develop a repeated-game model where individuals decide how much to invest in a network action (non-market) and in a market action. We show that when financial markets are well-developed and...

Using a database from Chile, we have tested empirically the effects of economic residential segregation on educational achievements. Our hypothesis is based on literature's findings about segregation's negative impact on individuals' well being. We found that segregation has negative impacts....