We consider the contribution of public education to growth through its role in building social capital instilling common values and norms that lower economic transaction costs and reduce social tensions between different population groups. This is modeled in the context of a political economy...

Sensitivity of sincere social communication to economic status disparity is incorporated into the construction of sincere social-capital index. The consideration of this index leads to the depiction of the happiness-wealth relationship as an inverted U-shaped curve that peaks at a larger than...