%0 Journal Article
%T Work and Income Sharing in a Rural  Economy: Effect on Economic Growth  and Welfare
%A Nobuyuki Iwai
%A Stanley R. Thompson
%J Theoretical Economics Letters
%P 386-396
%@ 2162-2086
%D 2014
%I Scientific Research Publishing
%R 10.4236/tel.2014.46050
%X <p class=\"MsoNormal\">
	<span lang=\"EN-US\" style=\"line-height:2;font-size:12px;font-family:Verdana;\">An endogenous growth model is developed to
explore the effect of work and income sharing (WIS) on economic growth and
welfare in a developing rural economy. The practice of WIS is a mechanism which
converts incremental diversity of risk into volatility reduction and overall
welfare gain. However, the effect on economic growth is sector specific. WIS in
the intermediate goods sector has a pro-growth effect through higher investment
returns while in the agricultural sector it has an anti-growth effect through
lower precautionary savings. WIS also decreases the level of regional government
subsidies needed to achieve the optimal growth rate.</span>
</p>
%K Work and Income Sharing
%K Rural Economy
%K Endogenous Growth Model
%K Welfare in Developing Countries
%K Technology Adaptation
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=46789