What are the roots of social capital and how can it be measured and built? Social capital is considered as a new production factor which must be added to the conventional concepts of human and physical capital. Social capital is productive because it increases the level of trust in a society and...

The basic goal of this paper is to develop an endogenous trade policy model in the Grossman and Helpman (1994) tradition that could engenise the number of lobby groups in the economy. It uses a game who has three stages.