The application of uniform solutions has several drawbacks, notably their lack of cost efficiency and their inability to guarantee individual rationality. A ‘proper’ specification of uniform solutions, however, reveals that uniform solutions that satisfy individual rationality always exist....

Martin Paldam is one of the most prominent figures of Danish economics and European public choice. In this introduction to the special issue, we identify five of the areas, where he has made significant contributions: (1) vote and popularity functions and political business cycles; (2)...

Most modern welfare states offer an extensive array of services and benefits that are wholly or partly financed by tax revenue. One missing link in explaining the long-run sustainability of such comprehensive welfare states could be the already-existing stock of trust. Indeed, our cross-country...

Why are the Scandinavian countries in the European Union significantly richer than Southern/Eastern European countries? We try to answer this question from an empirical social capital perspective. In particular, we are interested in the interplay of social trust as a positive and corruption as a...

Social capital, measured as the level of trustamong people, may be regarded as a newproduction factor alongside the traditionalones of human and physical capital. Withappropriate levels of social capital,monitoring and transaction costs can be savedand thus economic growth stimulated. Vialinking...

In this paper we analyze whether social capital can emerge endogenously from a process of preference evolution. We define social capital as preferences that promote voluntary cooperation in a one-shot Prisoner’s Dilemma game. We investigate how the endogenous preferences depend on the amount...