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Human Capital, Wealth, and Renewable Resources

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  • Wei-Bin ZHANG

    (Ritsumeikan Asia Pacific University, Japan)

Abstract

This paper studies dynamic interdependence among physical capital, resource and human capital. We integrate the Solow one-sector growth, Uzawa-Lucas two-sector and some neoclassical growth models with renewable resource models. The economic system consists of the households, production sector, resource sector and education sector. We take account of three ways of improving human capital: Arrow’s learning by producing (Arrow, 1962), Uzawa’s learning by education (Uzawa, 1965), and Zhang’s learning by consuming (Zhang, 2007). The model describes a dynamic interdependence among wealth accumulation, human capital accumulation, resource change, and division of labor under perfect competition. We simulate the model to demonstrate existence of equilibrium points and motion of the dynamic system. We also examine effects of changes in the productivity of the resource sector, the utilization efficiency of human capital, the propensity to receive education, and the propensity to save upon dynamic paths of the system.

Suggested Citation

  • Wei-Bin ZHANG, 2014. "Human Capital, Wealth, and Renewable Resources," Expert Journal of Economics, Sprint Investify, vol. 2(1), pages 1-20.
    • Handle: RePEc:exp:econcs:v:2:y:2014:i:1:p:1-20
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    More about this item

    Keywords

    education; physical capital; renewable resource; human capital; propensities to save and to learn; time distribution among study; work and leisure;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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