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The Long and Winding Road: Social Capital and Commuting

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Author Info
Poulsen, Odile () (Department of Economics, Aarhus School of Business)
Svendsen, Gert Tinggaard () (Aarhus University, Department of Public Policy)

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Abstract

We develop a two-sector model to analyze which kind of social

organization generates trust. Social capital is de…ned as trust. We examine two

communities: the bedroom community in which people commute long distance

to work and the virility community in which people do not commute to work.

The hypothesis is that people do not have time to interact spontaneously out-

side work in the bedroom community. We show that in the bedroom community

social capital cannot accumulate. Hence our results show that time spent in-

teracting with your neighbor must be added as an important production factor

when considering the formation of social capital in society. Thus, in a commu-

nity where agents only interact when producing output, social capital may not

accumulate To our knowledge, no such attempt to model social capital has yet

been undertaken and this gap or ‘missing link’in economic debates has to be

developed to grasp a more holistic understanding of the big di¤erences in the

wealth of nations or regions

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Publisher Info
Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 05-6.

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Length: 27 pages
Date of creation: 02 Sep 2005
Date of revision:
Handle: RePEc:hhs:aareco:2005_006

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Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Related research
Keywords: Social capital Two-Sector Model Indeterminacy

Find related papers by JEL classification:
A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
D90 - Microeconomics - - Intertemporal Choice and Growth - - - General
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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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.:
  1. Benhabib, Jess & Nishimura, Kazuo, 1983. "Competitive Equilibrium Cycles," Working Papers 83-30, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  2. Jean-Pierre Drugeon & Odile Poulsen & Alain Venditti, 2003. "On Intersectoral allocations, factors substitutability and multiple long-run growth paths," Economic Theory, Springer, vol. 21(1), pages 175-183, 01. [Downloadable!] (restricted)
  3. Drugeon, Jean-Pierre & Venditti, Alain, 2001. "Intersectoral external effects, multiplicities & indeterminacies," Journal of Economic Dynamics and Control, Elsevier, vol. 25(5), pages 765-787, May. [Downloadable!] (restricted)
  4. North, Douglass C, 1991. "Institutions," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 97-112, Winter. [Downloadable!] (restricted)
  5. Anders Poulsen & Gert Svendsen, 2005. "Social Capital and Endogenous Preferences," Public Choice, Springer, vol. 123(1), pages 171-196, April. [Downloadable!] (restricted)
  6. Nishimura, Kazuo, 1985. "Competitive equilibrium cycles," Journal of Economic Theory, Elsevier, vol. 35(2), pages 284-306, August. [Downloadable!] (restricted)
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