FROM SOCIAL CAPITAL TO HEALTH – AND BACK
Article first published online: 14 MAY 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Volume 23, Issue 5, pages 586–605, May 2014
How to Cite
Rocco, L., Fumagalli, E. and Suhrcke, M. (2014), FROM SOCIAL CAPITAL TO HEALTH – AND BACK. Health Econ., 23: 586–605. doi: 10.1002/hec.2934
- Issue published online: 2 APR 2014
- Article first published online: 14 MAY 2013
- Manuscript Accepted: 9 APR 2013
- Manuscript Revised: 11 MAR 2013
- Manuscript Received: 17 APR 2012
- social capital;
We assess the causal relationship between health and social capital, measured by generalized trust, both at the individual and the community level. The paper contributes to the literature in two ways: it tackles the problems of endogeneity and reverse causation between social capital and health by estimating a simultaneous equation model, and it explicitly accounts for mis-reporting in self-reported trust.
The inter-relationship is tested using data from the first four waves of the European Social Survey for 25 European countries, supplemented by regional data from Eurostat. Our estimates show that a causal and positive relationship between self-perceived health and social capital does exist and that it acts in both directions. In addition, the magnitude of the structural coefficients suggests that individual social capital is a strong determinant of health, whereas community level social capital plays a considerably smaller role in determining health. Copyright © 2013 John Wiley & Sons, Ltd.