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Social capital, perceptions and economic performance

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  • Hernández, José
  • Guerrero-Luchtenberg, César

Abstract

This paper describes how social capital emerges, relates to economic performance and evolves in the long run. Using the concept of psychological equilibrium, two types of individuals are generated in the population regarding their willingness to cooperate. We propose an evolutionary (learning) process over those types driven by the total payoffs of the psychological game, and provide a complete description of its dynamics. Macro-perceptions, defined as the individual perception of how cooperative the society is as a whole, are key to explain convergence to the full social capital state in the long run.

Suggested Citation

  • Hernández, José & Guerrero-Luchtenberg, César, 2016. "Social capital, perceptions and economic performance," MPRA Paper 71006, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71006
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    References listed on IDEAS

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    Cited by:

    1. Elżbieta Jędrych & Dariusz Klimek & Agnieszka Rzepka, 2022. "Social Capital in Energy Enterprises: Poland’s Case," Energies, MDPI, vol. 15(2), pages 1-18, January.

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    More about this item

    Keywords

    Psychological Equilibrium; Belief-dependent Behavior; Evolutionary Games; Replicator Dynamics; Economic Development.;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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