Though a vast amount of empirical work stresses the beneficial effects of social capital, the recent literature has explicitly recognized the importance of distinguishing different types of social capital. Particularly, a distinction has been made between homogeneous (or bonding) and...

Governments often see it as their responsibility to support cultural life and at times spend a significant amount of resources in the pursuit of this goal. The present paper analyses whether and how municipalities influence each other in this decision to spend resources on the arts (using data...