This paper analyzes a heterogeneous-agents endogenous-growth model incorporating both transaction costs and social capital. An individual can either become an active part of the society’s middle-class networks of trust and mutual cooperation, thus making a positive contribution to overall...

Various types of social capital facilitate the creation of intralocal or interlocal economic development partnerships because it reduces the transaction costs that lead to collective action problems. Prior studies have focused on explaining how collective action mechanisms lead to the creation...