Compared Perspective of the Crowding Out Hypothesis Abstract. Object of this paper is a general reflection on the European welfare state models, seen through the concept of social capital. The starting hypothesis is that in the presence of adequate and effective public social expenditure, it will be visible not only an increase for the individual wellbeing, but also for the whole society. Focus of this analysis are the possible connections between national social expenditure and the different level of social capital of European citizens.
Keywords: Crowding Out Hypothesis; Welfare States; Social Capital; Europe