Social Capital, Perceptions and Economic Performance
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Date
2016-04
Journal Title
Journal ISSN
Volume Title
Publisher
Scientific Research
Abstract
This paper describes how social capital emerges, relates to economic performance and evolves in
the long run. Using the concept of psychological equilibrium, two types of individuals are generated
in the population regarding their willingness to cooperate. We propose an evolutionary
(learning) process over those types driven by the total payoffs of the psychological game, and provide
a complete description of its dynamics. Macro-perceptions, defined as the individual perception
of how cooperative the society is as a whole, are key to explain convergence to the full social
capital state in the long run.
Description
Keywords
Psychological Equilibrium, Belief-Dependent Behavior, Evolutionary Games, Replicator Dynamics, Economic Development
Citation
Theoretical Economics Letters, 2016, 6, 214-227