In this paper we analyze a two-sector growth model in which the utility function is not additively separable in consumption and “quality leisure time”. Differently from the main body of theoretical literature on quality leisure, we assume that the “productivity” of leisure is not determined by the stock of human capital but instead by the quality of social environment, which in turn depends on the joint action of the economy-wide average leisure and of the stock of social capital. In this context we show that the time evolution of social capital may exhibit an inverted-U shaped path, according to which the stock of social capital, initially increasing, becomes definitively decreasing. This result is consistent with several empirical studies about the time evolution of social capital in industrialized economies (see e.g. Robert Putnam, 1995, Putnam, 2000). Furthermore, we show that the inverted-U shaped evolution of the stock of social capital can be observed only if the balanced growth path is locally indeterminate.
A two-sector model of economic growth with social capital accumulation
SODINI, MAURO;
2014-01-01
Abstract
In this paper we analyze a two-sector growth model in which the utility function is not additively separable in consumption and “quality leisure time”. Differently from the main body of theoretical literature on quality leisure, we assume that the “productivity” of leisure is not determined by the stock of human capital but instead by the quality of social environment, which in turn depends on the joint action of the economy-wide average leisure and of the stock of social capital. In this context we show that the time evolution of social capital may exhibit an inverted-U shaped path, according to which the stock of social capital, initially increasing, becomes definitively decreasing. This result is consistent with several empirical studies about the time evolution of social capital in industrialized economies (see e.g. Robert Putnam, 1995, Putnam, 2000). Furthermore, we show that the inverted-U shaped evolution of the stock of social capital can be observed only if the balanced growth path is locally indeterminate.File | Dimensione | Formato | |
---|---|---|---|
AGSZ-JBEE.pdf
accesso aperto
Tipologia:
Documento in Post-print
Licenza:
Creative commons
Dimensione
221.81 kB
Formato
Adobe PDF
|
221.81 kB | Adobe PDF | Visualizza/Apri |
1-s2.0-S2214804314000883-main.pdf
non disponibili
Tipologia:
Versione finale editoriale
Licenza:
NON PUBBLICO - accesso privato/ristretto
Dimensione
754.63 kB
Formato
Adobe PDF
|
754.63 kB | Adobe PDF | Visualizza/Apri Richiedi una copia |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.