A Continuous-Time Model of Career Concerns and Human Capital Accumulation

2011 ◽  
Author(s):  
Gonzalo Cisternas
Keyword(s):  
Human Capital ◽  
Continuous Time ◽  
Capital Accumulation ◽  
Career Concerns ◽  
Human Capital Accumulation ◽  
Continuous Time Model ◽  
Time Model

scholarly journals Human Capital Accumulation and the Evolution of Overconfidence

Games ◽  
2020 ◽  
Vol 11 (4) ◽  
pp. 46
Author(s):  
Luis Santos-Pinto
Keyword(s):  
Human Capital ◽  
Financial Markets ◽  
Continuous Time ◽  
Capital Accumulation ◽  
Field Data ◽  
Working Life ◽  
Human Capital Accumulation ◽  
Subjective Assessments ◽  
Chess Players ◽  
Distribution Of Income

This paper studies the evolution of overconfidence over a cohort’s working life. To do this, the paper incorporates subjective assessments into a continuous time human capital accumulation model with a finite horizon. The main finding is that the processes of human capital accumulation, skill depreciation, and subjective assessments imply that overconfidence first increases and then decreases over the cohort’s working life. In the absence of skill depreciation, overconfidence monotonically increases over the cohort’s working life. The model generates four additional testable predictions. First, everything else equal, overconfidence peaks earlier in activities where skill depreciation is higher. Second, overconfidence is lower in activities where the distribution of income is more dispersed. Third, for a minority of individuals, overconfidence decreases over their working life. Fourth, overconfidence is lower with a higher market discount rate. The paper provides two applications of the model. It shows the model can help make sense of field data on overconfidence, experience, and trading activity in financial markets. The model can also explain experimental data on the evolution of overconfidence among poker and chess players.

scholarly journals On the existence and sensitivity analysis of optimal catital accumulation paths in continuous time, infinite horizon models

1989 ◽  
Vol 30 (4) ◽  
pp. 450-459 ◽  
Author(s):  
E. Flytzanis ◽  
Nikolaos S. Papageorgiou
Keyword(s):  
Sensitivity Analysis ◽  
Continuous Time ◽  
Capital Stock ◽  
Capital Accumulation ◽  
Infinite Horizon ◽  
Continuous Time Model ◽  
Time Model ◽  
Initial Capital ◽  
Optimal Paths ◽  
The Value Function

AbstractIn this paper we consider an infinite horizon, continuous time model of economic growth. We prove two theorems; one on the existence of optimal paths of capital accumulation and the other on the dependence of the set of optimal paths on the initial capital stock (sensitivity analysis). In the existence result the underlying technology set is nonconvex and only its “investment’ slices are convex. The proof is direct, without any use of necessary conditions. In the sensitivity analysis, the technology set is convex and so we have that the value function is concave. Then having that, we show that the set of optimal paths is an upper semicaontinuous multifunction of the initial capital stock.

Human Capital Accumulation and Resource Abundance

2011 ◽  
pp. 66-77
Author(s):  
O. Vasilieva
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Relevant Literature ◽  
Harmful Effect ◽  
Human Capital Accumulation ◽  
Resource Abundance ◽  
Empirical Results ◽  
Theoretical Predictions ◽  
Crowd Out

Does resource abundance positively affect human capital accumulation? Or, alternatively, does it «crowd out» the human capital leading to the deterioration of economic growth? The paper gives an overview of the relevant literature and discusses both theoretical and empirical results obtained regarding the connection between human capital accumulation and resource abundance. It shows that despite some theoretical predictions about the harmful effect of resource abundance on human capital accumulation, unambiguous evidence of such impact that would be robust with respect to the change of resource abundance parameter has not been obtained yet.

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