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Social capital and regional social infrastructure investment: Evidence from New Zealand

Social capital and regional social infrastructure investment: Evidence from New Zealand

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Social capital and regional social infrastructure investment: Evidence from New Zealand
Social capital and regional social infrastructure investment: Evidence from New Zealand
Date: 2010-03
By: Arthur Grimes (Motu Economic and Public Policy Research)
Matthew Roskruge
Philip McCann (Department of Economics, University of Waikato and Faculty of Spatial Sciences, University of Groningen)
Jacques Poot (University of Waikato)
URL: http://d.repec.org/n?u=RePEc:mtu:wpaper:10_03&r=soc
In this paper we link unique data on local social infrastructure expenditure with micro-level individual survey data of self-reported social capital measures of trust and participation in community activities. We use both probit and tobit models to estimate the impact of social infrastructure expenditure on social capital formation. Our results imply that the links between social capital, demographic characteristics, human capital, geography and public social infrastructure investment are rather more subtle and complex than much of the literature implies. While we find evidence in support of many of the hypothesized relationships discussed in the social capital literature, our results also suggest that the impact of public social infrastructure investment is affected by both selection effects and free rider processes.
Social capital and regional social infrastructure investment: Evidence from New Zealand
Social capital and regional social infrastructure investment: Evidence from New Zealand
Date: 2010-03
By: Arthur Grimes (Motu Economic and Public Policy Research)
Matthew Roskruge
Philip McCann (Department of Economics, University of Waikato and Faculty of Spatial Sciences, University of Groningen)
Jacques Poot (University of Waikato)
URL: http://d.repec.org/n?u=RePEc:mtu:wpaper:10_03&r=soc
In this paper we link unique data on local social infrastructure expenditure with micro-level individual survey data of self-reported social capital measures of trust and participation in community activities. We use both probit and tobit models to estimate the impact of social infrastructure expenditure on social capital formation. Our results imply that the links between social capital, demographic characteristics, human capital, geography and public social infrastructure investment are rather more subtle and complex than much of the literature implies. While we find evidence in support of many of the hypothesized relationships discussed in the social capital literature, our results also suggest that the impact of public social infrastructure investment is affected by both selection effects and free rider processes.

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Categories:Types, Research
Published by: Institute for Open Economic Networks (I-Open) on Sep 08, 2010
Copyright:Attribution Non-commercial

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Social Capital and Regional Social InfrastructureInvestment: Evidence from New Zealand
 
Matthew Roskruge, Arthur Grimes, Philip McCann and Jacques PootMotu Working Paper 10-03Motu Economic and Public Policy Research
May 2010
 
ii
 Author contact details
Matthew RoskrugeDepartment of Economics and Population Studies Centre, University of Waikato Arthur GrimesMotu Economic and Public Policy ResearchDepartment of Economics, University of Waikato.arthur.grimes@motu.org.nzPhilip McCannDepartment of Economics, University of WaikatoFaculty of Spatial Sciences, University of Groningen Jacques Poot Department of Economics and Population Studies Centre, University of Waikato
 Acknowledgements
 We thank the Foundation for Research, Science and Technology for their funding assistance for this research (FRST grant MOTU0601 Infrastructure), Riddhi Guptafor preparing the data contained in Motu’s regional council and local authority financedatasets and Paul Perry for assistance in completing the WVS dataset. We are alsograteful for the comments of discussants Tadaaki Yoshioka and Masakuni Kakoi fromthe 2009 JSRSAI conference. All views solely represent those of the authors.
Motu Economic and Public Policy Research
PO Box 24390 WellingtonNew ZealandEmailinfo@motu.org.nz Telephone +64 4 9394250 Website www.motu.org.nz© 2010 Motu Economic and Public Policy Research Trust and the authors. Shortextracts, not exceeding two paragraphs, may be quoted provided clear attribution isgiven. Motu Working Papers are research materials circulated by their authors forpurposes of information and discussion. They have not necessarily undergone formalpeer review or editorial treatment. ISSN 1176-2667 (Print), ISSN 1177-9047 (Online).
 
iii
 Abstract
In this paper we link unique data on local social infrastructure expenditure with micro-levelindividual survey data of self-reported social capital measures of trust and participation incommunity activities. We use both probit and tobit models to estimate the impact of socialinfrastructure expenditure on social capital formation. Our results imply that the links betweensocial capital, demographic characteristics, human capital, geography and public socialinfrastructure investment are rather more subtle and complex than much of the literatureimplies. While we find evidence in support of many of the hypothesized relationships discussedin the social capital literature, our results also suggest that the impact of public socialinfrastructure investment is affected by both selection effects and free rider processes.
 JEL codes
D71, J18, O18, R23, R51
Keywords
Social capital, trust, participation, public infrastructure, demography, geography 

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