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Munich Personal RePEc Archive

Economic Growth, Technical Progress, and Social Capital: the Inverted U Hypothesis

Antoci, Angelo and Sabatini, Fabio and Sodini, Mauro (2011): Economic Growth, Technical Progress, and Social Capital: the Inverted U Hypothesis.

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Abstract

We set up a theoretical framework to analyze the possible role of economic growth and technical progress in the erosion of social capital. Under certain parameters, the relationship between technical progress and social capital can take the shape of an inverted U curve. We show the circumstances allowing the economy to follow trajectories where the stock of social capital grows endogenously and unboundedly.

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