DETERMINANTS OF INDIVIDUAL SOCIAL CAPITAL INVESTMENT

It has been claimed that social capital has a significant effect on various socio-economic phenomena. Recent articles criticize the social capital literature for emphasizing the implications of social capital without understanding how social capital is formed. This paper presents a model of individual social capital investment that synthesizes ideas from several Economic disciplines so as to capture the important features of social capital: investment requires time to be allocated to social capital production, it is place-specific, the investment decision depends upon individual and social stocks, and its effects generate externalities. Comparative statics derived from the theoretical model will be estimated using data from a survey of homeowners in Franklin County, Ohio. The empirical results show that the predictions of the model reflect actual social capital investment behavior.


Issue Date:
2004
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20224
Total Pages:
27
Note:
Replaced with revised version of paper 07/29/04.
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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