We first construct a theoretical model of a regional economy with two sectors. One sector uses physical and creative capital—in the sense of Florida (The rise of creative class. Basic Books, New York, NY, 2002)—to produce a knowledge good that is traded. The other sector uses physical and social capital to produce a good that is not traded. Second, we provide the first formal analysis of the cr...

In this paper we revisit the Dutch disease paying particular attention to the role of specific factors of production and capital stock dynamics. The main insight is that if the natural resource rich windfall is substantial but not large enough for the country to become a rentier, capital goods must be produced at home and adjustment to natural resource windfall takes time. It takes time to buil...

There are two facts related to the reallocation of physical assets across plants. In the macro level, capital reallocation, measured as the aggregate sales of used capital, is procyclical. In the micro level, selling used capital is costly. In this paper, I investigate the quantitative contribution of adverse selection in the used capital market towards generating the procyclical capital reallo...

This paper uses longitudinal data from China to examine the causal relationship between structural social capital and health among Chinese older adults. We employ various econometric strategies to control for the potential endogeneity of social capital and account for the possible contextual confounding effects by including community-level social capital. We use three indicators to measure indi...

This study addresses the macroeconomic effect of foreign aid on the factors of growth. Specifically, we examine the effects of foreign aid on capital investment (human capital, physical capital) in sub-Saharan Africa. Our methodological approach evaluates the effect of disaggregate aid (aid for infrastructure and aid for education) on capital investment. To test our postulate, we make use of pa...

Farmers are exposed to substantial weather and market related risks. Rational farmers seek to avoid large losses. Future climate change and energy price fluctuations thereforemake adaptating to increased risks particularly important for them.Managing soil natural capital—the capacity of the soil to generate ecosystem services of benefit to farmers—has been proven to generate the double dividend...

BACKGROUND Research has shown network social capital associated with a range of health behaviours and conditions. Little is known about what social capital inequalities in health represent, and which social factors contribute to such inequalities. METHODS Data come from the Montreal Neighbourhood Networks and Healthy Aging Study (n=2707). A position generator was used to collect network data ...

I provide a typology of social capital, breaking it down into seven more fundamental forms of capital: information capital, brokerage capital, coordination and leadership capital, bridging capital, favor capital, reputation capital, and community capital. I discuss how most of these forms of social capital can be identified using different network-based measures. JEL Classification Codes: D85, ...

INTRODUCTION Capital assets are used by the company in the physical process of producing goods and services and are ordinarily used for a number of years. The amounts involved are so large that businesses need to plan and evaluate expenditures for capital assets with care. The plan for expenditures is called a capital budget. The process of determining both how much to spend on a capital assets...

The paper shows that the principal can enhance her control over the agent’s human capital by acquiring the physical capital that is critical for him to create value. However, the enhancement in the control necessarily reduces his incentive to make human capital investment ex ante and to exert e¤ort ex post. This trade-o¤ between control and incentive thus decides the boundary of the …rm. The pa...