INVESTMENT IN HUMANS, TECHNOLOGICAL DIFFUSION AND ECONOMIC GROWTH,
RAND CORP SANTA MONICA CALIF
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The paper is concerned with the relationships between capital structure and technological progress. The process of education is viewed as an act of investment in people, and educated people are seen as bearers of human capital. According to the models presented, the rate of return to education is greater the more technologically progressive is the economy. This suggests that the progressiveness of the technology has implications for the optimal capital structure in the broad sense. It is concluded that society should build more human capital relative to tangible capital the more dynamic is the technology.
- Economics and Cost Analysis
- Humanities and History