Social Capital, Government Expenditures, and Growth

• 成果类型: Article
• 署名作者: Ponzetto, Giacomo A. M.; Troiano, Ugo Antonio
• 署名单位: Pompeu Fabra University; Centre de Recerca en Economia Internacional (CREI); University of California System; University of California Riverside
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvae043
• 发表日期: 2025
• 页码: 632-681
• 关键词: POLITICAL-ECONOMY; culture; trust; institutions; MODEL; education; DEMOCRACY; network; poverty; origin

摘要

This paper shows that social capital increases economic growth by raising government investment in human capital through better political incentives and selection. We provide empirical evidence that a greater share of output is spent on public education where social capital is higher, both across countries and across U.S. states. We develop a theoretical model of stochastic endogenous growth with imperfect political agency. Only some people correctly anticipate the future returns to current spending on public education. Greater social diffusion of information makes this knowledge more widespread among voters. As a result, social capital alleviates myopic political incentives to underinvest in human capital. It also helps voters select politicians who ensure high productivity in public education. Through this mechanism, we show that social capital raises the equilibrium growth rate of output and reduces its volatility.