The economic importance of social capital

Abstract

The subject of this article is the economics of social capital, which is understood as the ability to self-organize for joint actions for the common good. Particular attention is paid to the relationship of social capital and formal institutions, in particular the impact of social capital on the effectiveness of public administration. The structure of social capital, its “open” and “closed” varieties are analyzed. The forms, mechanisms and methods of measuring economic returns on social capital are discussed. The final part of the article presents the results of a study of the role of social capital in the well-being of modern Russian cities.