Search results
Results from the WOW.Com Content Network
The others are natural resources (including land), and labour. The word "Physical" is used to distinguish physical capital from human capital and financial capital. "Physical capital" denote to fixed capital, all other sorts of real physical asset that are not included in the production of a product is distinguished from circulating capital. [3]
Human capital risk occurs when the organization operates below attainable operational excellence levels. For example, if a firm could reasonably reduce errors and rework (the process component of human capital) from 10,000 hours per annum to 2,000 hours with attainable technology, the difference of 8,000 hours is human capital risk.
In contrast, many economists today consider "human capital" (skills and education) as the fourth factor of production, with entrepreneurship as a form of human capital. Yet others refer to intellectual capital. More recently, many have begun to see "social capital" as a factor, as contributing to production of goods and services.
This unified theory of inequality and growth, developed by Oded Galor and Omer Moav, [124] suggests that the effect of inequality on the growth process has been reversed as human capital has replaced physical capital as the main engine of economic growth. In the initial phases of industrialization, when physical capital accumulation was the ...
It is used in technical economics to define "balanced growth", which is the goal of improving human capital as much as economic capital. Public capital is a blanket term that attempts to characterize physical capital that is considered infrastructure and which supports production in unclear or poorly accounted ways. This encompasses the ...
He discusses three main types of capital: human, physical, and social. [23] Human capital is an individual's skills, knowledge, and experience, which determine their value in society. [24] Physical capital, being completely tangible and generally a private good, originates from the creation of tools to facilitate production.
The faster the turnover of constant capital (i.e., the shorter the turnover time), other things being equal, the higher the rate of profit. The concept of "constant capital" is closely related to the concept of "real capital" which is used by Marx to distinguish physical capital goods from fictitious capital.
The Solow–Swan model augmented with human capital predicts that the income levels of poor countries will tend to catch up with or converge towards the income levels of rich countries if the poor countries have similar savings rates for both physical capital and human capital as a share of output, a process known as conditional convergence ...