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An economic model of work-related stress

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  • Greiner, Alfred
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    Abstract

    In this paper we present an economic model of optimal consumption and labor supply where we assume that working may generate stress that affects the well-being of the representative individual. As to stress we posit that it is influenced by cumulated past labor and capital. The latter reflects the fact that work-related stress evolves gradually over time and that it is more likely to occur in modern societies. Using optimal control theory we demonstrate that sustained cycles may result. Further, we numerically compute the global optimal value function and give a representation of the limit cycle.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 66 (2008)
    Issue (Month): 2 (May)
    Pages: 335-346

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    Handle: RePEc:eee:jeborg:v:66:y:2008:i:2:p:335-346

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    Web page: http://www.elsevier.com/locate/jebo

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    1. Engelbert Dockner & Gustav Feichtinger, 1991. "On the optimality of limit cycles in dynamic economic systems," Journal of Economics, Springer, vol. 53(1), pages 31-50, February.
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    Cited by:
    1. Johnston, David W. & Lee, Wang-Sheng, 2012. "Extra Status and Extra Stress: Are Promotions Good for Us?," IZA Discussion Papers 6675, Institute for the Study of Labor (IZA).
    2. Weehuizen, Rifka & Sanditov, Bulat & Cowan, Robin, 2008. "Productivity effects of innovation, stress and social relations," MERIT Working Papers 015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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