Does social capital explain the Solow residual? A DSGE approach

Amedeo Argentiero, Roy Cerqueti and Fabio Sabatini

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract Social capital has been credited with playing a role in many desirable economic outcomes. We analyze how these potentially beneficial effects translate into the macro-performance of economies by developing a dynamic stochastic general equilibrium (DSGE) model featuring the role of social capital in the explanation of the Solow residual. We then simulate and estimate the model with Bayesian techniques using Italian data. Our framework fits actual data better than a standard DSGE model, suggesting that social capital may improve the economic performance via its impact on total factor productivity.

Keywords: social capital; total factor productivity; Solow residual; DSGE models (search for similar items in EconPapers)
JEL-codes: A13 A14 E22 O11 (search for similar items in EconPapers)
Date: 2018-05-31
New Economics Papers: this item is included in nep-dge, nep-eff, nep-mac and nep-soc
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https://mpra.ub.uni-muenchen.de/87100/1/MPRA_paper_87100.pdf original version (application/pdf)

Related works:
Journal Article: Does social capital explain the Solow residual? A DSGE approach (2021)
Working Paper: Does social capital explain the Solow residual? A DSGE approach (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:87100

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