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A Gust of Trust

Zulj, Valentin LU and Callenberg, Anna (2018) NEKH01 20181
Department of Economics
Abstract
The purpose of this paper is to investigate the effect of trust on the predictive power of the Solow growth model, extended to use human capital as a growth inducing factor. Previous literature widely agrees that non-economic variables are, indeed, of great importance in predicting the growth of economies, and hence, we choose to develop a growth model taking the levels of trust into account, seeing as there is no recognized model doing so. Because of the influence that trust -- and variables similar to it -- has on macroeconomic theory and thinking, we find it is suitable to extend the array of economic growth models in the way described. To conclude, we assert that the extension of the Solow model does in fact improve our possibilities... (More)
The purpose of this paper is to investigate the effect of trust on the predictive power of the Solow growth model, extended to use human capital as a growth inducing factor. Previous literature widely agrees that non-economic variables are, indeed, of great importance in predicting the growth of economies, and hence, we choose to develop a growth model taking the levels of trust into account, seeing as there is no recognized model doing so. Because of the influence that trust -- and variables similar to it -- has on macroeconomic theory and thinking, we find it is suitable to extend the array of economic growth models in the way described. To conclude, we assert that the extension of the Solow model does in fact improve our possibilities of predicting values of real output per capita, at least when it comes to Sweden. (Less)
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author
Zulj, Valentin LU and Callenberg, Anna
supervisor
organization
alternative title
On Trust and Growth
course
NEKH01 20181
year
type
M2 - Bachelor Degree
subject
keywords
Economic growth, trust, Solow, macroeconomics
language
English
id
8943504
date added to LUP
2018-07-05 11:26:25
date last changed
2018-07-05 11:26:25
@misc{8943504,
  abstract     = {The purpose of this paper is to investigate the effect of trust on the predictive power of the Solow growth model, extended to use human capital as a growth inducing factor. Previous literature widely agrees that non-economic variables are, indeed, of great importance in predicting the growth of economies, and hence, we choose to develop a growth model taking the levels of trust into account, seeing as there is no recognized model doing so. Because of the influence that trust -- and variables similar to it -- has on macroeconomic theory and thinking, we find it is suitable to extend the array of economic growth models in the way described. To conclude, we assert that the extension of the Solow model does in fact improve our possibilities of predicting values of real output per capita, at least when it comes to Sweden.},
  author       = {Zulj, Valentin and Callenberg, Anna},
  keyword      = {Economic growth,trust,Solow,macroeconomics},
  language     = {eng},
  note         = {Student Paper},
  title        = {A Gust of Trust},
  year         = {2018},
}