A distinction between individual and communal aspects of social capital is introduced, and their roles in production explored. Contacts are required to transact. contact formation and replacement are mediated by either market institutions or, less efficiently, by informal networks. Replacement...

In this paper, we relate the differential development of market and planning systems to the creation and destruction of contacts. In our general equilibrium model, a greater stock of relational capital (business contacts) increases the sold output of a representative firm. Besides this direct...

This paper links two concepts of social capital to economic development. Social Capital (SC) appears in the litrature, on the individual level, as the number contacts of an agent has and his ability to raise contacts and, on the community level, as norms that help a society to function. In our...