Review Human Capital Accumulation and Depreciation Daniel Mc

Review «Human Capital Accumulation and Depreciation» Daniel Mc. Fadden Completed Student of group e 505: Volvich Leonid Teacher: Ivanova Olga Alexandrovna Razumova Tatyana Olegovna

Relevance • Dominance of the importance of human capital in the modern economy • The necessity of increasing of labor productivity • Distributed through the whole world information technologies require high qualification of users • Modern development of the economy is closely connected with the innovative sector, demanding to human capital

The additional factors of production in the article Human capital Physical capital

Aspects of physical capital equipment resources Physical capital fixed plant intangibles

Capital accumulation equation d K/dt = I − δK

Aspects of human capital health capital living conditions Human capit experi ence education

The life-cycle of human capital Fluid and crystallized cognitive skills

Literature • • • Heckman, J. “The Economics, Technology, and Neuroscience of Human Capability Formation. ” PNAS 104, No. 33(2007): 13250– 55. Becker, G. S. “Investment in Human Capital: A Theoretic Analysis. ” J. Polit. Econ. 70, No. 5, Part 2 (1962): 9– 49. Ben-Porath, Y. “The Production of Human Capital and the Life Cycle of Earnings. ” J Polit. Econ. 75, No. 4, Part 1(1967): 352– 65. Cattell, R. B. “Theory of Fluid and Crystallized Intelligence: A Critical Experiment. ” J. Educ. Psych. 54 (1963): 1– 22. Carneiro, P. , and J. Heckman. “Human Capital Policy. ” Discussion Paper 821, IZA, 2003. Grossman, M. The Demand for Health: A Theoretical and Empirical Investigation. New York: Columbia University Press, 1972 a.

Criticism • The article does not provide an in-depth analysis of the topic and highlights only some theoretical aspects. • The nature of the article is too subjective. • A big list of literature was not fully used