We show the existence of a twin peaks relation between trust and the size of the welfare state that stems from two opposing forces. Uncivic people support large welfare states because they expect to benefit from them without bearing their costs. But civic individuals support generous benefits...

This paper presents a simple endogenous growth model with human capital accumulation in which competition in the educational system can lead to over-education, with rapid output growth and a simultaneous decline in welfare along a balance growth path in some circumstances. This illustrates the...

This paper exposes a simple endogenous growth model with human capital accumulation in which competition in the educational system can lead to fast output growth with a simultaneous decline in welfare along a balanced growth path. This illustrates the idea that satisfaction is not...