Browsing by Author "Roldan, Eldon Neri Y."

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    Effects of human capital and social capital on cooperative and defective behavior
    (2012-10) Reyes, Leo Martin P.; Roldan, Eldon Neri Y.; Desierto, Desiree A.
    Effective policies and measures to promote economic development, efficiency, and social stability are the ultimate goal of every government. Tremendous efforts are being exerted to achieve these goals, with specific targets being highlighted in the past decades. Nurturing human ;\ capital and social capital hc:tve becbme popular in achieving economic development by ensuring that citizens abide by the rules and cooperate by the standards set by society and legal authorities. With the growing awareness of this intangible, yet very powerful kind of capital, this paper delves on the effects of human capital and social capital on human propensity to cooperate and defect. Using data on illegal gambling behaviour of 1200 respondents from the Social Weather Station's 2005 Second Quarter Survey, the researchers found both human capital and social capital to have a significant negative effect on defective behavior using Ordinary Least Squares (OLS) Regression Model. However, more than providing a comparative analysis of the effect of human and social capital, this paper used another model called "Instrumental Variables (IV) Estimation through Two Stage Least Squares" to control for the endogeneity issue of the main variables and to acquire less biased and more reliable estimates on the effect of these variables on defective behavior. Using IV Estimation, the researchers found social capital, as proxied by "religious attendance'~d instrumented by "gender", to have a significant negative effect on the propensity of an individual to defect from a certain standard or norm. On the other hand, human capital, as proxied by "educational attainment" and instrumented by "height", was found to be insignificant to defecting behavior. Moreover, this paper aims to be a reference to revision of old policies or creation of new policies that would target human behavior