Will growth and technology destroy social interaction? The inverted U-shape hypothesis
Fabio Sabatini () and
Mauro Sodini ()
wp.comunite from Department of Communication, University of Teramo
This paper addresses two hot topics of the contemporary debate, social capital and economic growth. Our theoretical analysis sheds light on decisive but so far neglected issues: how does social capital accumulate over time? Which is the relationship between social capital, technical progress and economic growth in the long run? The analysis shows that the economy may be attracted by alternative steady states, depending on the initial social capital endowments and cultural exogenous parameters representing the relevance of social interaction and trust in well-being and production. When material consumption and relational goods are substitutable, the choice to devote more and more time to private activities may lead the economy to a “social poverty trap”, where the cooling of human relations causes a progressive destruction of the entire stock of social capital. In this case, the relationship of social capital with technical progress is described by an inverted U-shaped curve. However, the possibility exists for the economy to follow a virtuous trajectory where the stock of social capital endogenously and unboundedly grows.
Keywords: Relational goods; social capital; economic growth; technical change (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg, nep-hap, nep-hrm, nep-ltv and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Working Paper: Will growth and technology destroy social interaction? The inverted U-shape hypothesis (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ter:wpaper:0057
Access Statistics for this paper
More papers in wp.comunite from Department of Communication, University of Teramo
Bibliographic data for series maintained by Giovanni Di Bartolomeo ().