Microeconomics

Algebraic Representation of Social Capital Matrix

January 1, 2010

Tariq Shah

Syed Akhter Hussain Shah

Eatzaz Ahmed

Pakistan Institute of Development Economics

Abstract

This paper proposes a mathematical model based on a Boolean algebra involving a 44 social capital matrix [Shah (2008)], that emerges through interaction within and across individuals, communities, institutions and state. The framework provides a coding system for the existence or otherwise of various categories of social interaction. The model illustrates that social interaction can be neatly described in a format that facilitates the interpretation of social intra- and interactions among the four types of players in generating economic activity.

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