We study the co-evolution of social participation and social capital accumulation, taking the view that the former contributes to the latter, and both contribute to the enjoyment of ‘relational goods’.
Withinthis framework, we show that a process of substitution of private for social activities (observable in some advanced, affluent economies), might be self-reinforcing and lead to a Pareto-dominated steady state.
We find some scope for policy intervention, but we also acknowledge its difficulty.
JEL-Classification: C73, D62, I31, J22, O41, Z13
Key-words: Social Capital, Well-being, Time Allocation