Social Capital, Trust, and Multiple Equilibria in Economic Performance
Authors:
- 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.
- Record ID
- IMPORT-ARTICLE-00014448
- Author
- Journal series
- Macroeconomic Dynamics, ISSN 1365-1005
- Issue year
- 2014
- Vol
- 18
- Pages
- 282-315
- Publication size in sheets
- 1.65
- Keywords in English
- Bridging Social Capital, Social Trust, Multiple Equilibria, Poverty Trap
- ASJC Classification
- Abstract in Polish
- Artykuł 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.
- DOI
- DOI:10.1017/S136510051200034X opening in a new tab
- Language
- (en) English
- File
-
- File: 1
- Macroeconomic-Dynamics-2014-Growiec.pdf
- of 14-09-2015
355 KB
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- Score (nominal)
- 25
- Publication indicators
- : 2014 = 1.256; : 2014 = 0.667 (2) - 2014=0.975 (5)
- Additional fields
- Dorobek Naukowy - Preview URL: http://dn.swps.edu.pl/Podglad.aspx?WpisID=14448
- Dorobek Naukowy - Approve URL: http://dn.swps.edu.pl/Biuro/ZatwierdzanieWpisu.aspx?WpisID=14448
Share
- Uniform Resource Identifier
- http://192.168.13.97/info/article/IMPORT-ARTICLE-00014448/
* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perishopening in a new tab system.