The Effects of Drug Use on Capital Accumulation

8 Pages Posted: 31 May 2012

See all articles by Tito Belchior Silva Moreira

Tito Belchior Silva Moreira

Catholic University of Brasilia

Adolfo Sachsida

Institute for Applied Economic Research (IPEA); Institute of Applied Economic Research (IPEA)

Paulo R. A. Loureiro

Universidade de Brasília (UnB)

Date Written: May 30, 2012

Abstract

This paper analyzes the effects of drug use on capital accumulation in a modified version of the Ramsey’s model. We show that the equilibrium per capita stock of capital is smaller than in the original model, which implies that drug use has a negative impact on capital accumulation.

Keywords: Drug use, Willingness to work

JEL Classification: K42, K49

Suggested Citation

Moreira, Tito Belchior Silva and Sachsida, Adolfo and Loureiro, Paulo R. A., The Effects of Drug Use on Capital Accumulation (May 30, 2012). Available at SSRN: https://ssrn.com/abstract=2070941 or http://dx.doi.org/10.2139/ssrn.2070941

Tito Belchior Silva Moreira (Contact Author)

Catholic University of Brasilia ( email )

SGAN 916 Modulo B
Brasília, DF
Brazil

Adolfo Sachsida

Institute for Applied Economic Research (IPEA) ( email )

SBS Ed. BNDES Quadra 1
7o. andar
Brasilia DF 7000-010
Brazil
+55 61 2026-5025 (Phone)
+55 61 315-5448 (Fax)

HOME PAGE: http://www.bdadolfo.blogspot.com

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil

Paulo R. A. Loureiro

Universidade de Brasília (UnB) ( email )

Campus Universitário Darcy Ribeiro
Asa Norte
Brasília, Distrito Federal 70910-900
Brazil

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