An economic model of work-related stress
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- 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.