Dimensions of social capital

Abstract

In this article several propositions on social capital research are suggested beginning with case studies. (1) The concept of "social capital" is primarily of heuristic value. (2) Social capital and institutional rules are two groups of variables having an impact on the level of cooperation in a society. (3) For a better understanding of the effects of social capital, its dimensions have to be analyzed more thoroughly. These dimensions are reciprocity norms, the motivation to employ sanctions even if they are costly, reputation, and repeated interactions. Social networks are the "breeding ground" as so far as they support these dimensions and their positive effects on cooperation. (4) To analyze the effects of the dimensions of social capital one has to step down from the macro level to the micro level of social interactions. Models from game theory are helpful to gain more insight of the conditions under which cooperation is achieved. The models allow for the derivation of hypothesis which may be tested empirically with experimental or survey data. These propositions define a research program to give social capital research more explanatory power.