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The Long and Winding Road: Social Capital and Commuting

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  • Poulsen, Odile

    ()
    (Department of Economics, Aarhus School of Business)

  • Svendsen, Gert Tinggaard

    ()
    (Aarhus University, Department of Public Policy)

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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Bibliographic 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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Keywords: Social capital; Two-Sector Model; Indeterminacy;

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  1. 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.
  2. Nishimura, Kazuo, 1985. "Competitive equilibrium cycles," Journal of Economic Theory, Elsevier, vol. 35(2), pages 284-306, August.
  3. Goenka, A. & Poulsen, O., 2002. "Indeterminacy and Labor Augmenting Externalities," Working Papers 02-9, University of Aarhus, Aarhus School of Business, Department of Economics.
  4. 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.
  5. Anders Poulsen & Gert Svendsen, 2005. "Social Capital and Endogenous Preferences," Public Choice, Springer, vol. 123(1), pages 171-196, April.
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