Culture & social capital: creation of human capital and economic growth

Sistelo, Marta and Mazeda Gil, Pedro (2025): Culture & social capital: creation of human capital and economic growth.

Abstract

Culture and social capital may be variables of particular interest when explaining economic growth. In recent years, policymakers and economists have increasingly considered their role in economic growth, yet cultural capital and social capital are analyzed separately. Despite being different concepts of capital, in this paper we argue that there is a link between cultural and social capital, and both need to be accounted for when analyzing economic growth and welfare. We develop a theoretical dynamic general-equilibrium model using a mainstream endogenous economic growth set-up (namely with human capital accumulation), incorporating cultural and social capital. We use the model to devise long-run and transitional-dynamics effects from the perspective of both economic growth and welfare, explicitly considering the interplay between cultural and social capital and other forms of capital. A detailed calibration of the model allows for the derivation of quantitative results, with an emphasis on policy implications.

• Item Type: MPRA Paper
• Language: English
• Keywords: Endogenous Growth; Social Capital; Cultural Capital; Human Capital; Welfare
• Subjects: J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z10 - General

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