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An economic model of social capital and health




This paper presents an economic model to connect with the substantial empirical literature on social capital and health that exists largely outside of economics. Representative papers from that literature are reviewed and these show that disagreements exist on the nature and definition of social capital. The paper presents a new line of reasoning to support the view of social capital as a network of interpersonal bonds to include the bonds of family and close friends, not just the community at large. It then adapts and extends the work of Becker and Murphy on social economics to explain the demand for health goods as well as health bads in the presence of increased social capital. It further develops choice under risk to explain the demand for goods that entail a risk of death, such as cigarettes, illegal drugs, or excessive drinking. Empirical examples, including new statistical analyses are presented to illustrate the derivations.

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  • Folland, Sherman, 2008. "An economic model of social capital and health," Health Economics, Policy and Law, Cambridge University Press, vol. 3(04), pages 333-348, October.
  • Handle: RePEc:cup:hecopl:v:3:y:2008:i:04:p:333-348_00

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    References listed on IDEAS

    1. Kaestner, R. & Joyce, T. & Racine, A., 2001. "Medicaid eligibility and the incidence of ambulatory care sensitive hospitalizations for children," Social Science & Medicine, Elsevier, vol. 52(2), pages 305-313, January.
    2. Kristine A. Lykens & Paul A. Jargowsky, 2002. "Medicaid matters: children's health and medicaid eligibility expansions," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(2), pages 219-238.
    3. Cameron,A. Colin & Trivedi,Pravin K., 2008. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9787111235767, March.
    4. Dahlberg, Matz & Lundin, Douglas, 2005. "Antidepressants and the Suicide Rate: Is There Really a Connection?," Working Paper Series 2005:4, Uppsala University, Department of Economics.
    5. Jens Ludwig & Dave E. Marcotte, 2005. "Anti-depressants, suicide, and drug regulation," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(2), pages 249-272.
    6. Kaestner, Robert & Dubay, Lisa & Kenney, Genevieve, 2005. "Managed care and infant health: an evaluation of Medicaid in the US," Social Science & Medicine, Elsevier, vol. 60(8), pages 1815-1833, April.
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    Cited by:

    1. Eiji Yamamura, 2011. "Differences in the effect of social capital on health status between workers and non-workers," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(4), pages 385-400, December.
    2. Fiorillo, Damiano & Sabatini, Fabio, 2015. "Structural social capital and health in Italy," Economics & Human Biology, Elsevier, vol. 17(C), pages 129-142.
    3. Xindong Xue & W. Robert Reed, 2015. "The Relationship Between Social Capital And Health In China," Working Papers in Economics 15/05, University of Canterbury, Department of Economics and Finance.
    4. Yamamura, Eiji, 2011. "Different effects of social capital on health status among residents: Evidence from modern Japan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 475-479.
    5. Lars Thiel, 2015. "Leave the Drama on the Stage: The Effect of Cultural Participation on Health," SOEPpapers on Multidisciplinary Panel Data Research 767, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Yamamura, Eiji, 2009. "Differences of the effects of social capital on health status among residents: evidence from modern Japan," MPRA Paper 14983, University Library of Munich, Germany.
    7. Del Vecchio, Mario & Fenech, Lorenzo & Prenestini, Anna, 2015. "Private health care expenditure and quality in Beveridge systems: Cross-regional differences in the Italian NHS," Health Policy, Elsevier, vol. 119(3), pages 356-366.
    8. Fiorillo, Damiano & Sabatini, Fabio, 2011. "Quality and quantity: The role of social interactions in self-reported individual health," Social Science & Medicine, Elsevier, vol. 73(11), pages 1644-1652.
    9. Knapp, Martin, 2015. "Reflecting on ‘An economic model of social capital and health’," LSE Research Online Documents on Economics 62736, London School of Economics and Political Science, LSE Library.
    10. Nauenberg, Eric & Laporte, Audrey & Shen, Leilei, 2011. "Social capital, community size and utilization of health services: A lagged analysis," Health Policy, Elsevier, vol. 103(1), pages 38-46.
    11. repec:eee:ehbiol:v:26:y:2017:i:c:p:174-185 is not listed on IDEAS
    12. Folland, Sherman & Islam, Muhammad Quamrul & Kaarbøe, Oddvar Martin, 2012. "The Social Capital and Health Hypothesis: A Theory and New Empirics Featuring the Norwegian HUNT Data," Working Papers in Economics 04/12, University of Bergen, Department of Economics.
    13. Sirven, Nicolas & Debrand, Thierry, 2012. "Social capital and health of older Europeans: Causal pathways and health inequalities," Social Science & Medicine, Elsevier, vol. 75(7), pages 1288-1295.
    14. Saharnaz Nedjat & Reza Majdzadeh & Azita Kheiltash & Ensiyeh Jamshidi & Shahryar Yazdani, 2013. "Social Capital in Association with Socioeconomic Variables in Iran," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1153-1170, September.
    15. Yu, Ge & Sessions, John G. & Fu, Yu & Wall, Martin, 2015. "A multilevel cross-lagged structural equation analysis for reciprocal relationship between social capital and health," Social Science & Medicine, Elsevier, vol. 142(C), pages 1-8.
    16. Özcan, Burcu & Bjørnskov, Christian, 2011. "Social trust and human development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 753-762.
    17. repec:dau:papers:123456789/10720 is not listed on IDEAS
    18. Yamamura, Eiji, 2009. "Why effects of social capital on health status differ between genders: considering the labor market condition," MPRA Paper 14985, University Library of Munich, Germany.

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