Agénor, Pierre-RichardDinh, Hinh T.2013-09-252013-09-252013-09https://hdl.handle.net/10986/15824Links between social capital, human capital, and product imitation are studied in an overlapping generations model of endogenous growth where the key benefit of social capital is to promote imitation. There is also a two-way interaction between imitation and human capital. Building social capital (which brings direct utility) requires time. Because life expectancy is endogenously related to human capital, time allocation between market work and social capital accumulation is also endogenously determined. Social capital accumulation depends also on access to infrastructure. The model is calibrated numerically for a low-income country. A policy that helps to promote social capital accumulation may be very effective to foster economic growth, even if it involves offsetting cuts in other productive components of government spending, such as education outlays or infrastructure investment. Offsetting cuts in infrastructure investment, however, may be less effective.en-USCC BY 3.0 IGOACCESS TO SOCIAL CAPITALACCESS TO TELECOMMUNICATIONSADVERSE EFFECTADVERSE EFFECTSAGGREGATE DEMANDALLOCATIONARBITRAGEBANK POLICYBENCHMARKBEQUESTSBINDING CONSTRAINTBONDSBUDGET CONSTRAINTBUDGET CONSTRAINTSBUREAUCRACYBUSINESS CYCLECAPITAL RATIOCAPITAL SHARESCAPITAL STOCKCAPITAL STOCKSCETERIS PARIBUSCHILD LABORCOLLECTIVE ACTIONCOMMERCIAL CONTRACTSCOMMUNITY ASSOCIATIONSCONNECTIVITYCONSTANT RETURNS TO SCALECONTRACT ENFORCEMENTDEBTSDEMAND CURVEDEMOCRACYDEMOGRAPHICDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISCOUNT RATEECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC PERFORMANCEECONOMIC RESEARCHECONOMICSELASTICITYELASTICITY OF DEMANDELASTICITY OF SUBSTITUTIONEQUILIBRIUMEQUILIBRIUM PRICEEQUIPMENTEXPENDITUREEXPORTSEXTERNALITIESEXTERNALITYFINANCESFINANCIAL DEVELOPMENTFINANCIAL SUPPORTFISCAL POLICYFULL EMPLOYMENTGDPGLOBAL ECONOMIC PROSPECTSGOVERNMENT BUDGETGOVERNMENT INVESTMENTGOVERNMENT REVENUESGOVERNMENT SPENDINGGROWTH RATEGROWTH RATESHOLDINGHOUSEHOLD BARGAININGHUMAN CAPITALIMPERFECT COMPETITIONINCOMEINCOME DISTRIBUTIONINCOME GROWTHINCOME INEQUALITYINDUSTRIAL COUNTRIESINFORMATION ASYMMETRIESINFORMATION SHARINGINFRASTRUCTURE INVESTMENTINFRASTRUCTURE PROJECTSINSURANCEINTANGIBLEINTELLECTUAL PROPERTYINTERNATIONAL BANKINTERNATIONAL ECONOMICSINVESTINGINVESTMENT FLOWSINVESTMENT STRATEGIESKNOWLEDGE EXTERNALITIESLABOR HOURSLABOR MARKETLEGAL SYSTEMLIFE EXPECTANCYLOW-INCOME COUNTRIESLOW-INCOME COUNTRYLOW-INCOME ECONOMYMACROECONOMICSMARGINAL COSTMARGINAL COST OF PRODUCTIONMARGINAL PRODUCTMARGINAL REVENUEMONETARY FUNDMONOPOLYNEGATIVE EXTERNALITYNEIGHBORHOODSNEW PRODUCTSOPTIMIZATIONOUTPUTOVERLAPPING GENERATIONS MODELPATENTSPHYSICAL CAPITALPOLITICAL ECONOMYPOLITICAL INSTITUTIONSPOSITIVE EXTERNALITIESPOSITIVE EXTERNALITYPRICE ELASTICITYPRIVATE CAPITALPRIVATE CAPITAL STOCKPRIVATE INVESTMENTPRIVATE SAVINGSPRODUCTION FUNCTIONPRODUCTION INPUTSPRODUCTION STRUCTUREPRODUCTIVITYPROPERTY RIGHTSPUBLIC GOODPUBLIC INVESTMENTPUBLIC POLICIESPUBLIC POLICYPUBLIC SPENDINGRATE OF RETURNREAL GDPRETURNSSAVINGSSAVINGS RATESOCIAL CAPITALSOCIAL CAPITAL ACCUMULATIONSOCIAL INTERACTIONSSOCIAL NETWORKSSOCIAL NORMSSOCIAL ORGANIZATIONSSOCIAL RELATIONSHIPSSOCIAL STRUCTURESOCIAL VALUESSPECIALIZATIONTAXTAX RATETAX REVENUESTECHNOLOGICAL CHANGETELECOMMUNICATIONSTRADE ASSOCIATIONSTRADE-OFFTRADESTRADINGTRANCHESURBANIZATIONWAGESWorld Bank10.1596/1813-9450-6607