Human capital and modelling of its development

Abstract

The paper deals with the relation between education, as pivotal characteristics of capital, and efficiency of school work-places with use of production modelling. A starting analytic tool is a determination of school facilities efficiency according to an efficiency matrix from which it results that also schools with a lower volume of resources per a student can significantly contribute to human capital development. Transformation of these sources into knowledge is expressed by a production function of education in which results of students are an endogenous variable in dependence on school resources, qualification level of students' families, school-mates' level, previous results of students and their effort. The course of the production function and its shape depends on many factors and economy of scale determined in the paper.

Keywords

• education economy
• human capital
• modelling
• production function in education