5

You are correct in pointing out the flaws of GDP. But honestly, it's the best we have came up with; measuring the stock of wealth is just impossible. You say you can estimate the value of your own assets, and of course it seems that way. We all feel that way, until we actually try. How much is your cellphone worth? Easy to know, go to ebay and look for ...


3

One partial measure is the Net International Investment Position: It describes the foreign assets owned by the households, firms governments, etc of a country net of the local assets owned by households, firms, governments, etc of a foreign country. Norway is high up, Greece far down in that list NIIP list in terms of NIIP/GDP ratio.


3

Standard economic treatments of skill generally assume that people have some baseline level of skill (human capital) which varies over people, and also that skill (human capital) can be improved via education or other methods. Most of the time, models don't specify why baseline skill varies over individuals, but heritability would presumably be one reason. ...


2

If you multiply the index by the population size (or the quantity used to compute the per person index), you get an index of the stock of human capital. For example, if for a given country the index is $h_t$ and population is $N_t$, then the stock is: $$ H_t = h_t \times N_t $$ Now, by the definition a stock follows an accumulation rule, just as physical ...


2

The problem is that you are ignoring the division $ \frac {0} {0} $, which is in $ \frac {\partial L} {\partial v} $. Before looking at the solution, and seeing that indeed when $ \theta_ {2} = 0 \ \Rightarrow \ v ^ {*} = 0 $, I want to note that the first constraint $ c_ {1} = w - (1 -v) \theta_ {1} h_ {1} ^ {a1} $ can be more realistic and logical. It is ...


1

I think this needs little bit context to be answered, because in your question you missed a whole host of background assumptions - this is not a result that will hold for arbitrary function. The equations actually describe are derived from first order optimality condition for a steady state from a Hamiltonian $$f_k(k(t), h(t)) − f_h(k(t), h(t)) = \delta_k − \...


1

Most DSGE models don’t model heterogeneity in individual labor market. Although I suppose you could do that if you would really want to but, it would be incredibly data intensive to actually estimate. You can have some DSGE models with endogenous growth where human capital accumulation plays a role but most of them are based on just exogenous technological ...


1

This would mainly be observed as "endowments", such as in intergenerational macro models which use (e.g.) 1 or more representative households in relation to resources initially available to individuals, who then face various constraints (generally modelled as a differential market interest rate for borrowers and savers). I am not aware of reputable works ...


1

The Grundrisse’s “fragment on the machines” expounds on the tendency to universal automation rather famously, without Marx having stripped his more idealistic hopes from his exposition, and without the deadening jargon of Capital’s chapters on the organic composition of capital. It isn’t perfect on the automation of science itself, but that just needs to be ...


1

National wealth? https://en.wikipedia.org/wiki/National_wealth From Wikipedia, the free encyclopedia National (net) wealth, also net wealth (in Singapore), national net worth, gross national wealth (GNW), and total national wealth, is the total sum value of monetary assets minus liabilities of a given nation. It refers to the total value of wealth ...


1

Separate life in four intervals (ignoring senior age): young children $(1)$, teenagers-youngs$(2)$, young productive adults $(3)$, middle-age productive adults $(4)$. If we follow the argument, as a young productive adult the individual will have $$H_1\cdot(1+g_1)^2 \tag{1}$$ of human capital What we currently do results in $$H_1\cdot(1+g_1)^2+H_2\...


1

You ask for studies which I don't have, but I can think of a few reasons: Diminishing returns - if a child has a decent home and parental support you can give them a good education at reasonable cost. To get a child from a broken home to the same point requires much more intervention - and cost. Moral hazard - there are many hard-working families just above ...


1

My understanding is that the literature has so far used three kinds of empirical analysis of the directed technical change. Illustration based on the relationship between the relative supply of skills and the college premium as in Acemoglu (2002). Quantitative Analysis to shed light on the theory as in Acemoglu, Gancia, and Zilibotti (2015). They match key ...


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