Template-Type: ReDIF-Paper 1.0 Author-Name: Arthur Grimes Author-X-Name-First: Arthur Author-X-Name-Last: Grimes Author-Email: arthur.grimes@motu.org.nz Author-Workplace-Name: Motu Economic and Public Policy Research Author-Name: Matthew Roskruge Author-X-Name-First: Matthew Author-X-Name-Last: Roskruge Author-Email: mattr@waikato.ac.nz Author-Workplace-Name: University of Waikato Author-Name: Philip McCann Author-X-Name-First: Philip Author-X-Name-Last: McCann Author-Email: P.McCann@rug.nl Author-Workplace-Name: Department of Economics, University of Waikato and Faculty of Spatial Sciences, University of Groningen Author-Name: Jacques Poot Author-X-Name-First: Jacques Author-X-Name-Last: Poot Author-Email: jpoot@waikato.ac.nz Author-Workplace-Name: University of Waikato Title: Social capital and regional social infrastructure investment: Evidence from New Zealand Abstract: In this paper we link unique data on local social infrastructure expenditure with micro-level individual survey data of self-reported social capital measures of trust and participation in community activities. We use both probit and tobit models to estimate the impact of social infrastructure expenditure on social capital formation. Our results imply that the links between social capital, demographic characteristics, human capital, geography and public social infrastructure investment are rather more subtle and complex than much of the literature implies. While we find evidence in support of many of the hypothesized relationships discussed in the social capital literature, our results also suggest that the impact of public social infrastructure investment is affected by both selection effects and free rider processes. Length: 21 pages Creation-Date: 2010-03 File-URL: https://motu-www.motu.org.nz/wpapers/10_03.pdf Number: 10_03 Classification-JEL: D71, J18, O18, R23, R51 Keywords: Social capital, trust, participation, public infrastructure, demography, geography Handle: RePEc:mtu:wpaper:10_03