Models of Lifetime Human Capital Accumulation for Perfect and Imperfect Credit Markets
- Resource Type
- Conference
- Authors
- Yuan, Chun; Cao, Lingyan; Fu, Weining
- Source
- 2012 Fifth International Conference on Business Intelligence and Financial Engineering Business Intelligence and Financial Engineering (BIFE), 2012 Fifth International Conference on. :622-624 Aug, 2012
- Subject
- Computing and Processing
Communication, Networking and Broadcast Technologies
Components, Circuits, Devices and Systems
Humans
Educational institutions
Investments
Economic indicators
Manuals
Innovation management
Life cycle
Human Capital Accumulation
Perfect Credit Market
Imperfect Credit Market
- Language
Human capital accumulation is essentially a kind of consumption behavior which spans one's entire life cycle. In this paper, we first propose a life cycle consumption model for a perfect and then extend it to an imperfect credit market. Our models imply that the personal lifetime funds one owns affect one's personal lifetime earning both in a perfect and an imperfect credit market and there exists a value of personal lifetime funds which can derive the maximum value of personal lifetime earning. However, ceteris paribus, one accumulates less human capital and consumes fewer goods in the latter.