Y. Hossein Farzin (University of California) Ken-Ichi Akao (Waseda University)
Abstract
We assume that people value employment not only to earn income to satisfy their consumption needs but also as a means of community/social involvement that provides socio-psychological (non-pecuniary) benefits. We show that the latter incentive can encourage full employment harvesting resources and explain why poor resource-based communities may exhaust a natural resource in a finite time even if there is a sustainable path of resource consumption available. We show that communities could sustain their natural resources by using outside-the-community employment and economic diversification, but, to be effective, such policies must ensure that the outside wage rate and the initial capital stock are above certain minimum levels, which will be higher the longer these policies are delayed.
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Publisher Info
Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number
2006.24.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Di Tella, R. & MacCulloch, R.J.: Oswald, A.J., 1997.
"The Macroeconomics of Happiness,"
Papers
19, Centre for Economic Performance & Institute of Economics.
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