This paper offers an overview of the main literature on social capital in the light of Paldam’s (2000) “social capital dream”. Its main contributions can be summed as follows. Firstly, It develops an encompassing definition of social capital built on social interactions, social norms and trust. Secondly, it argues that social capital affects economic outcomes as a productive input or through TFP, and/or through transaction costs. Thirdly, it surveys some commonly used empirical proxies and discusses their determinants.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
1328.
Find related papers by JEL classification: Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology
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Alesina, Alberto & La Ferrara, Eliana, 2002.
"Who trusts others?,"
Journal of Public Economics,
Elsevier, vol. 85(2), pages 207-234, August.
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