ECON 151 Lecture Notes - Lecture 2: Knowledge Economy, Human Capital, Public Good
11 Nov 2020
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Document Summary
Becomes in micro and macro one of the most studied topics. It is a capital hence the result of an investment i. e. production roundabout (cf. Hc has a value , a depreciation rate and a renting price (wage); R = w e - w 0 return is wage with education minus wage w/o education. Hc costs something to be produced: direct cost (tuition fee) and. Ez pz opp cost of time in school as opposed to work/gaining income. Hc is produced and owned by humans. Attached to an individual: difficult to transfer. L2 - introduction to human capital theory & data analysis (cont"d) Public good = available to everyone for free, provided by government, non-excludable & non-rival. Education is an imperfect public good = has some characteristics of a public good but not perfect. Education as an investment = capital, hence the concept of human capital . Role of education becomes central with the development of a knowledge.
