Social Capital, Trust, and Multiple Equilibria in Economic Performance

Katarzyna Growiec , Jakub Growiec

Abstract

We propose a novel mechanism giving rise to poverty traps and multiple equilibria in economic performance. It is a potentially important source of persistent underdevelopment across countries and regions. At the core of this mechanism, bridging social capital and social trust feed back on each other, interdependently affecting individuals’ earnings and subjective well-being. High trust and abundant bridging social capital reinforce each other, leading to a “high” equilibrium where both these variables take persistently high values, and earnings and well-being are high as well, whereas low trust and lack of bridging social capital create a vicious circle, leading to a “low trust trap” where all these variables are persistently low. The workings of our theoretical model are in agreement with a wide range of findings from the contemporary literature in sociology and social psychology.  
Author Katarzyna Growiec (Wydział Psychologii)
Katarzyna Growiec,,
- Wydział Psychologii
, Jakub Growiec
Jakub Growiec,,
-
Journal seriesMacroeconomic Dynamics, ISSN 1365-1005, (A 20 pkt)
Issue year2014
Vol18
Pages282-315
Publication size in sheets1.65
Keywords in EnglishBridging Social Capital, Social Trust, Multiple Equilibria, Poverty Trap
ASJC Classification2002 Economics and Econometrics
Abstract in PolishArtykuł ten dotyczy diagnozy związku między kapitałem pomostowym i zaufaniem społecznym, który z kolei może prowadzić do tzw. "pułapki ubóstwa" w niektórych krajach lub całych regionach świata. Prowadząc do błędnego koła.   
DOIDOI:10.1017/S136510051200034X
Languageen angielski
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Macroeconomic-Dynamics-2014-Growiec.pdf of 14-09-2015
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Score (nominal)25
Publication indicators Scopus SNIP (Source Normalised Impact per Paper): 2014 = 1.256; WoS Impact Factor: 2014 = 0.667 (2) - 2014=0.975 (5)
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Dorobek Naukowy - Preview URLhttp://dn.swps.edu.pl/Podglad.aspx?WpisID=14448
Dorobek Naukowy - Approve URLhttp://dn.swps.edu.pl/Biuro/ZatwierdzanieWpisu.aspx?WpisID=14448
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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