In this paper we study the economic determinants of the inter-sectoral distribution of skilled workers and the long-run consequences of imperfect competition on growth within an R&D-based growth model with human capital accumulation. We find that steady-state growth is driven only by incentives to accumulate human capital and is independent of scale effects. In the model imperfect competition h...

We analyze the impact of vertical integration when a monopolistic producer can make a capital commitment before deciding on output. For the vertically separated industry structure, we ̄nd that opportunism resulting from competition between retailers leads to a longrun underinvestment in capital. With vertical integration, the capital investment is e±cient but output is monopolistically restrict...

Space allocation is an important issue in the university sector [1]. Frequently, the utilisation of the estate is calculated as the product of the frequency of use of individual rooms and the associated occupancy at a particular time. Then, poorly utilised estate results in significant over expenditure on both capital and operational budgets across the sector. The Higher Education Funding Counc...

The allocation of UK personal sector wealth across five broad asset categories (net financial wealth, housing (and durable assets) wealth, state pension wealth, private pension wealth, and human capital) is investigated using the FAIDS (financial AIDS) model. Apart from total wealth and returns, additional variables relating to capital market imperfections, and demographic, labour market and cr...

Risk capital is the contribution of an exposure to the default risk of a financial institution. We investigate its relationship with required shareholder returns, showing that the use of return on risk capital (RAROC) as a risk-adjusted performance measure is inconsistent with the standard theory of financial valuation and that using this one measure to represent at the same time both contribut...

We consider a production economy ‘à la Mirrlees’ to be one in which the earning capability of individuals is endogenous. Individuals are heterogeneous with respect to their preferences and their propensity to benefit from a given investment in human capital. We look for allocation rules satisfying properties that capture the objective of equalizing opportunities. We characterize four allocation...

Most growth models assume capital is homogeneous with regard to technology. This contradicts intuition and empirical evidence that the majority of technology is embodied in the capital stock. Berger (2001) showed that neoclassical vintage capital (embodied technology) and non-vintage capital (disembodied technology) models have different convergence rates, although identical steady state growth...