A spatial, simultaneous model of social capital and poverty

Jane L. Harrison, Claire A. Montgomery and P. Wilner Jeanty ()

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2019, vol. 78, issue C, 183-192

Abstract: This study explores the interrelationship between social capital and poverty, a negative indicator of well-being, in the Western United States. Econometric models that account for the endogeneity of poverty and social capital, spatial dependence, and cross-equation error correlation were used to explore two questions: is the presence of social capital associated with reduced poverty levels and does the presence of poverty impact social capital stocks? We found evidence that communities with higher social capital levels tend to have lower poverty rates and that poverty may pose barriers to social capital formation. This suggests that policies to reduce poverty will be more effective if coupled with policies to support social capital formation. The study's findings are particularly salient for communities in persistent poverty. These results emerged only after accounting for endogeneity and spatial relationships. Because many factors contributing to well-being are jointly determined with well-being and indicators of well-being are frequently spatially clustered, this situation is likely to be more common than has been typically recognized in the literature.

Keywords: Social capital; Community well-being; Poverty; Simultaneous equation models; Spatial econometrics (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2214804318304166
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:78:y:2019:i:c:p:183-192

DOI: 10.1016/j.socec.2018.09.001

Access Statistics for this article

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) is currently edited by Pablo Brañas Garza

More articles in Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) from Elsevier
Bibliographic data for series maintained by Catherine Liu ().