Social capital, government expenditures and growth
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- dc.contributor.author Ponzetto, Giacomo A. M.
- dc.contributor.author Troiano, Ugo
- dc.date.accessioned 2024-02-06T12:25:40Z
- dc.date.available 2024-02-06T12:25:40Z
- dc.date.issued 2024-06-26
- dc.description.abstract This paper shows that social capital increases economic growth by raising government investment in human capital through better political incentives and selection. We provide empirical evidence that a greater share of output is spent on public education where social capital is higher, both across countries and across U.S. states. We develop a theoretical 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 discusion of information makes this knowledge more wide-spread among voters. As a result, social capital alleviates myopic political incentivesto underinvest in human capital. It also helps voters select politicians who 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.ca
- dc.format.mimetype application/pdf*
- dc.identifier.uri http://hdl.handle.net/10230/58966
- dc.language eng
- dc.language.iso engca
- dc.rights.accessRights info:eu-repo/semantics/openAccessca
- dc.subject.keyword Social capitalen
- dc.subject.keyword Education expenditureen
- dc.subject.keyword Economic growthen
- dc.subject.keyword Electionsen
- dc.subject.keyword Government expenditureen
- dc.subject.keyword Imperfect Informationen
- dc.title Social capital, government expenditures and growthca
- dc.type info:eu-repo/semantics/workingPaperca