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Economic Growth, Technological Progress and Social Capital: The Inverted U Hypothesis
Author(s) -
Antoci Angelo,
Sabatini Fabio,
Sodini Mauro
Publication year - 2013
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12007
Subject(s) - economics , technological change , social capital , stock (firearms) , capital (architecture) , microeconomics , capital accumulation , set (abstract data type) , neoclassical economics , economic system , macroeconomics , profit (economics) , engineering , mechanical engineering , history , programming language , computer science , social science , archaeology , sociology
We set up a theoretical framework to analyse the role of economic growth and technological progress in the erosion of social capital. Under certain conditions on parameters, the relationship between technological progress and social capital can take the shape of an inverted U curve. Furthermore, we show the circumstances that allow the economy to follow trajectories where the stock of social capital grows endogenously and unboundedly.