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Endogenous growth, decline in social capital and expansion of market activities

[Zeitschriftenartikel]

Bartolini, Stefano; Bonatti, Luigi

Zitationshinweis

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Abstract We model in an endogenous growth set-up the hypotheses that the expansion of market activities weakens social capital formation and that firms can invest in formal mechanisms of control and enforcement to substitute for social capital (trust, work ethics, honesty). The model shows that the economy tends to grow faster when it is relatively poorer in social capital and that perpetual growth can be consistent with the progressive erosion of social capital. These results may help to reconcile Putnam's claim that social capital has declined in the U.S. with the satisfactory growth performance of the U.S. over the same period.
Klassifikation Erhebungstechniken und Analysetechniken der Sozialwissenschaften; Wirtschaftssoziologie
Sprache Dokument Englisch
Publikationsjahr 2008
Seitenangabe S. 917-926
Zeitschriftentitel Journal of Economic Behavior & Organization, 67 (2008) 3-4
DOI http://dx.doi.org/10.1016/j.jebo.2008.01.003
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)
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