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Social Capital and Contributions in a Public-Goods Experiment

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  • Lisa R. Anderson
  • Jennifer M. Mellor
  • Jeffrey Milyo

Abstract

Recent empirical studies from across the social and behavioral sciences find that social capital is associated with various measures of well-being, including economic growth (Stephen Knack and Phillip Keefer 1997) and mortality (Ichiro Kawachi, Bruce P. Kennedy and Kimberly Lochner 1997). These findings have inspired subsequent studies by economists examining the determinants of individual level measures of social capital (e.g., Alberto Alesina and Elianna La Ferrara 2002). However, experimental evidence from trust games conducted by Edward L. Glaeser, David I. Laibson, Jose A. Scheinkman and Christine L. Soutter (2001) calls into question the efficacy of the most prevalent measures of social capital employed in the literature. In contrast, we show that these same measures are significantly associated with contributions in a public goods experiment and perform as well as the alternative measures of social trust suggested by Glaeser, et al. Because social capital is thought to influence wellbeing through its effect on public good provision, our results bolster previous empirical work on the causes and consequences of social capital.
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Suggested Citation

  • Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2004. "Social Capital and Contributions in a Public-Goods Experiment," American Economic Review, American Economic Association, vol. 94(2), pages 373-376, May.
    • Handle: RePEc:aea:aecrev:v:94:y:2004:i:2:p:373-376
    Note: DOI: 10.1257/0002828041302082
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    1. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 811-846.
      • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
    2. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    3. Kawachi, I. & Kennedy, B.P. & Lochner, K. & Prothrow-Stith, D., 1997. "Social capital, income inequality, and mortality," American Journal of Public Health, American Public Health Association, vol. 87(9), pages 1491-1498.
    4. Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2003. "Inequality, Group Cohesion, and Public Good Provision: An Experimental Analysis," Working Papers 0308, Harris School of Public Policy Studies, University of Chicago.
    5. Carpenter, Jeffrey P. & Daniere, Amrita G. & Takahashi, Lois M., 2004. "Cooperation, trust, and social capital in Southeast Asian urban slums," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 533-551, December.
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