Social capital, government expenditures, and growth
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- dc.contributor.author Ponzetto, Giacomo A. M.
- dc.contributor.author Troiano, Ugo
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2020-05-25T09:26:59Z
- dc.date.available 2020-05-25T09:26:59Z
- dc.date.issued 2012-02-01
- dc.date.modified 2020-05-25T09:23:28Z
- dc.description.abstract This paper shows that social capital increases economic growth by raising government investment in human capital. We present a model of stochastic endogenous growth with imperfect political agency. Only some people correctly anticipate the future returns to current spending on public education. Greater social diffusion of information makes this knowledge more widespread among voters. As a result, we find it alleviates myopic political incentives to underinvest in human capital, and it helps the selection of politicians that ensure high productivity in public education. Through this mechanism, we show that social capital raises the equilibrium growth rate of output and reduces its volatility. We provide evidence consistent with the predictions of our model. Individuals with higher social capital are more informed about their government. Countries with higher social capital spend a higher share of output on public education.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1307
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/19867
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1307
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword social capital
- dc.subject.keyword education expenditures
- dc.subject.keyword economic growth
- dc.subject.keyword elections
- dc.subject.keyword government expenditures
- dc.subject.keyword imperfect information
- dc.subject.keyword Macroeconomics and International Economics
- dc.title Social capital, government expenditures, and growth
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper