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. JEL codesD71, J18, O18, R23, R51

Māori, the Indigenous people of Aotearoa New Zealand, have an intrinsically environmental approach to economics. This approach—informed by the Māori worldview—was refined over the first millennium of inhabitation, before colonization brought the intrusion of Western institutions and the consequent involution of Māori institutions. Māori view humans as embedded within a wider nonhuman community of nature that is simultaneously spiritual and material. Māori understand “nature” as a unified spiritual-socioecology. Economics is just one facet of this whole, a facet fundamentally entwined with the whole such that all economic relationships have inherently social, spiritual, and ecological elements. At the core of Māori relationships with nature is the ethic of kaitiakitanga, or the act of guardianship over the spiritual-socioecology. Māori have a responsibility to actively care for their human and nonhuman community, to act with mana (authority and dignity), to respect nature’s tapu (sacredness), and to maintain nature’s mauri (life force). The Māori economy is underpinned by an integrated, nuanced, and adaptive framework of beliefs and institutions that constrains decision-making, ensuring the consideration of the human, nonhuman, and spiritual domains across time while simultaneously being calibrated toward delivering mutually beneficial outcomes within kin-group networks. This ensures that economic success does not come at the expense of other people, nature, or future generations. An economy based on a Māori worldview is, fundamentally, an environmental economy. Following colonization, Māori suffered a loss of mana. Land was sold below market rate or stolen, and after massive deforestation and significant loss of native flora and fauna, Aotearoa New Zealand’s tapu was desecrated and its mauri reduced. In the mid- to late-20th century, Māori political activism and a resultant tribunal examining actions and omissions by the state during land acquisition resulted in Māori regaining mana. Consequently, Māori have overcome the drastic change in rights to their remaining land to act as kaitiaki (guardians) of this remaining land in ways both congruent with traditional practices (te ao tūroa) and adapted to changed context (te ao hurihuri). Māori have realigned the imposed governance structures of their organizations to reinstate their original focus on the intergenerational well-being of human and nonhuman communities, reinvigorating the influence of mana in business, and its capacity to create a virtuous circle. Māori have managed to thrive in the settler and global economy not despite their environmentally grounded economic approach, but because of it.

Prior studies suggest that homeownership positively impacts on social capital formation. However, many studies find it difficult to control adequately for selection effects in the form of factors, some of which may be unobserved, that encourage both homeownership and investment in social capital by households. A biennial survey conducted in New Zealand cities provides data that enable the control of such selection effects with propensity score matching methods, while also benchmarking the results by means of regression methods. The results confirm that homeownership exerts positive impacts on the formation of social capital. At the same time, homeownership demands greater accountability of local government and leads to reduced satisfaction with local government performance, thereby negatively impacting on community social capital. Hence these two dimensions of housingrelated social capital work in opposite directions from each other, a finding which has not been previously observed.

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A field study of drinkers in the night-time economy of a New Zealand university town was conducted to evaluate how well drinkers can assess their breath alcohol concentration (BrAC). Drinkers in this setting inaccurately estimate their intoxication, and those with higher BrAC tended to underestimate their BrAC on average.