A Gust of Trust

Sammanfattning: The purpose of this paper is to investigate the effect of trust on the predictive power of the Solow growth model, extended to use human capital as a growth inducing factor. Previous literature widely agrees that non-economic variables are, indeed, of great importance in predicting the growth of economies, and hence, we choose to develop a growth model taking the levels of trust into account, seeing as there is no recognized model doing so. Because of the influence that trust -- and variables similar to it -- has on macroeconomic theory and thinking, we find it is suitable to extend the array of economic growth models in the way described. To conclude, we assert that the extension of the Solow model does in fact improve our possibilities of predicting values of real output per capita, at least when it comes to Sweden.