Ponzetto, Giacomo AM; Troiano, Ugo - C.E.P.R. Discussion Papers - 2014
incentives to under-invest in education, whose returns are delayed and less visible to voters. In equilibrium, higher social … capital raises the average output growth rate and reduces its volatility by increasing public investment in education while … reduces public education expenditures. We provide suggestive cross-country evidence consistent with these predictions. …