A Neo‐Durkheimian Theory of Small Communities

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Abstract
The core hypothesis of the neo‐Durkheimian theory of community proposed here is that average welfare of the residents is determined by the interaction of ‘structure’ and ‘transaction organization,’ and that this interaction holds net of individual attributes. In formula form: w = (S*t). Structure is defined by three systemic dimensions – differentiation, pluralism and solidarity – which are interpreted as ‘institutionalized problem‐solving capacity.’ These dimensions have causal primacy over transaction organizations such as factories, commercial firms, medical facilities, and so on, even though transaction organization is technically exogenous. The effect of this transaction term is to reverse the conventional political economy causal sequence, which begins with production organization and moves through class polarization to lower average welfare.

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