Information about Individual Capital
Individual capital comprises inalienable or personal traits of persons, tied to their bodies and available only through their own free will, such as skill, creativity, enterprise, courage, capacity for moral example, non-communicable wisdom, invention or empathy, non-transferable personal trust and leadership.
It was recognized as an intangible quality of persons in economics back to at least Adam Smith. He distinguished it (as "enterprise") from labour (economics) which can be coerced and is usually seen as strictly imitative (learned or transmitted, via such means as apprenticeship).
Marxist economics refers instead to "an individual's social capital - individuals are sources neither of creativity and innovation, nor management skill. A problem with that analysis is that it simply cannot explain the substitution problem and lack of demand that occurs when, for instance, an understudy takes on a leading role, or a second author takes over writing a popular book series. At the very least there must be some conditional, if not firm-specific then "class specific", special ability to command premiums for outstanding personal performance.
Neoclassical economics by contrast refers to "the individual in whom the human capital is ... embedded", which implies a strong association of the individual with the instructional capital they learn from, with little or no social capital influence. This is orthogonal to the Marxist view, but not necessarily opposed.
Human development theory reflects both distinctions: it sees labour as the yield of individual capital in the same way that neoclassical macro-economics sees financial capital as the yield of the looser idea of human capital. But the rest problem and social welfare function selection, as well as the subjective factors in behavioral finance, has led to a closer analysis of factors of production. In effect, the financial architecture is no longer trusted as an arbiter of the value of life as it was in neoclassical economics. Money is not seen as values-neutral, but as embodying a set of larger social choices about money supply rules, made by measuring well-being of whole populations.
Fusions of terminology are common. Sociological analysts refer to "individual-level elements of social capital" or "an individual's social capital" or just "individual social capital" while economic analysts often use the phrase firm-specific human capital. In either case the clearly includes individual capital but also some "activity-", "community-" or "firm-specific" social capital (community trust) and instructional capital (shareable knowledge or skills). This is easy to measure: its yield is your salary in your current job.
To the degree this is consistent if you take other work nearby, this opens the questions of what is not "firm-specific" and whether a nation is just a bigger "firm": Some analyses see political capital, or just "influence" or "trust of professionals" as a full style of capital of its own. Some ethicists, most clearly Jane Jacobs, see this as simple corruption. Nonetheless, corruption clearly has a cash value, involves some creativity to arrange, and is a decision factor. It is a skill like any other.
Perhaps because of this, not all theorists recognize individual capital as being as essential as labour, or distinct from social or political influence, or from instructional capacity. These theorists often refer to "intellectual capital", which more properly describes a debate or locus of complexity that arises when individuals take key instructional roles. Some refer to celebrity as another fusion, when individuals take key social roles.
Those who differentiate individual capital tend to see it as something that one can invest in, directly, and see grow, directly. For individual skill, even skill at a highly imitative enterprise, like sports or mastery of a musical instrument, this is very often quite measurable. Many enterprises, for instance, a music conservatory or circus school or creative writing coach, are clearly making a living on the identification and (somewhat) measurable enhancement of the individual.
An invention is an object, process, or technique which displays an element of novelty. An invention may sometimes be based on earlier developments, collaborations or ideas, and the process of invention requires at least
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It was recognized as an intangible quality of persons in economics back to at least Adam Smith. He distinguished it (as "enterprise") from labour (economics) which can be coerced and is usually seen as strictly imitative (learned or transmitted, via such means as apprenticeship).
Marxist economics refers instead to "an individual's social capital - individuals are sources neither of creativity and innovation, nor management skill. A problem with that analysis is that it simply cannot explain the substitution problem and lack of demand that occurs when, for instance, an understudy takes on a leading role, or a second author takes over writing a popular book series. At the very least there must be some conditional, if not firm-specific then "class specific", special ability to command premiums for outstanding personal performance.
Neoclassical economics by contrast refers to "the individual in whom the human capital is ... embedded", which implies a strong association of the individual with the instructional capital they learn from, with little or no social capital influence. This is orthogonal to the Marxist view, but not necessarily opposed.
Human development theory reflects both distinctions: it sees labour as the yield of individual capital in the same way that neoclassical macro-economics sees financial capital as the yield of the looser idea of human capital. But the rest problem and social welfare function selection, as well as the subjective factors in behavioral finance, has led to a closer analysis of factors of production. In effect, the financial architecture is no longer trusted as an arbiter of the value of life as it was in neoclassical economics. Money is not seen as values-neutral, but as embodying a set of larger social choices about money supply rules, made by measuring well-being of whole populations.
Fusions of terminology are common. Sociological analysts refer to "individual-level elements of social capital" or "an individual's social capital" or just "individual social capital" while economic analysts often use the phrase firm-specific human capital. In either case the clearly includes individual capital but also some "activity-", "community-" or "firm-specific" social capital (community trust) and instructional capital (shareable knowledge or skills). This is easy to measure: its yield is your salary in your current job.
To the degree this is consistent if you take other work nearby, this opens the questions of what is not "firm-specific" and whether a nation is just a bigger "firm": Some analyses see political capital, or just "influence" or "trust of professionals" as a full style of capital of its own. Some ethicists, most clearly Jane Jacobs, see this as simple corruption. Nonetheless, corruption clearly has a cash value, involves some creativity to arrange, and is a decision factor. It is a skill like any other.
Perhaps because of this, not all theorists recognize individual capital as being as essential as labour, or distinct from social or political influence, or from instructional capacity. These theorists often refer to "intellectual capital", which more properly describes a debate or locus of complexity that arises when individuals take key instructional roles. Some refer to celebrity as another fusion, when individuals take key social roles.
Those who differentiate individual capital tend to see it as something that one can invest in, directly, and see grow, directly. For individual skill, even skill at a highly imitative enterprise, like sports or mastery of a musical instrument, this is very often quite measurable. Many enterprises, for instance, a music conservatory or circus school or creative writing coach, are clearly making a living on the identification and (somewhat) measurable enhancement of the individual.
External links
- Capital: Volume Two
- Capital: Volume Three
- Proposals for the measurement of individual social capital
- "individual-level elements of social capital"
- "an individual's social capital"
- intellectual capital accounts - "individual capital and structural capital ... described to explain the future profitability and growth of the company"
In economics, capital or capital goods or real capital refers to already-produced durable goods available for use as a factor of production. Steam shovels (equipment) and office buildings (structures) are examples.
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359, 1805–1809. Hofstadter, Douglas. (2007) I Am A Strange Loop. Basic Books. ISBN 978-0465030781 Kane, Robert (1998). The Significance of Free Will. New York: Oxford University Press ISBN 0-19-512656-4 Lawhead, William F. (2005).
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A skill is the learnt capacity or talent to carry out pre-determined results often with the minimum outlay of time energy or both Examples include:
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- Academic skills
- Reading
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Creativity (or creativeness) is a mental process involving the generation of new ideas or concepts, or new associations between existing ideas or concepts.
From a scientific point of view, the products of creative thought (sometimes referred to as divergent thought)
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From a scientific point of view, the products of creative thought (sometimes referred to as divergent thought)
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An entrepreneur (a loanword from French introduced and first defined by the Irish economist Richard Cantillon) is a person who operates a new enterprise or venture and assumes some accountability for the inherent risks.
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Courage, also known as bravery and fortitude, is the ability to confront fear, pain, danger, uncertainty or intimidation. It can be divided into "physical courage" — in the face of physical pain, hardship, and threat of death — and "moral courage" —
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Moral example is trust in the moral core of another, a role model, without the obvious mediation of any theory or language. It was cited by Confucius, Muhammad, Mohandas Gandhi and other important philosophers and theologians as the prime duty of a ruler - including the head of a
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Wisdom, according to the Merriam-Webster dictionary, is defined as the "1 a: Accumulated philosophic or scientific learning-knowledge; b: Ability to discern inner qualities and relationships-insight; c: Good sense-judgment d: Generally accepted belief <challenges what has become
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For the musical form, see .
An invention is an object, process, or technique which displays an element of novelty. An invention may sometimes be based on earlier developments, collaborations or ideas, and the process of invention requires at least
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Empathy (from the Greek εμπάθεια, "physical affection, partiality") is commonly defined as one's ability to recognize, perceive and feel directly the emotion of another.
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The word leadership can refer to:
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- The process of leading.
- Those entities that perform one or more acts of leading.
- The ability to affect human behaviour so as to accomplish a mission designated by the leader
Terminology, usage and conceptual scope
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Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence "rules of the house(hold).
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Adam Smith FRSE (baptised June 5 (OS) / June 16 (NS) 1723 – July 17, 1790) was a Scottish moral philosopher and a pioneering political economist. He is a major contributor to the modern perception of free market economics.
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An entrepreneur (a loanword from French introduced and first defined by the Irish economist Richard Cantillon) is a person who operates a new enterprise or venture and assumes some accountability for the inherent risks.
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labour (or labor) is a measure of the work done by human beings. It is conventionally contrasted with such other factors of production as land and capital. There are theories which have created a concept called human capital (referring to the skills that workers possess, not
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Apprenticeship is a system of training a new generation of skilled crafts practitioners, which is still popular in some countries. Apprentices (or in early modern usage "prentices") build their careers from apprenticeships.
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Marxian economics refers to a body of economic thought stemming from the work of Karl Marx.
The adherents of Marxian economics, particularly in academia, distinguish it from Marxism as a political ideology, arguing that Marx's approach to understanding the economy is
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The adherents of Marxian economics, particularly in academia, distinguish it from Marxism as a political ideology, arguing that Marx's approach to understanding the economy is
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Social capital, referring to connections within and between social networks, is a core concept in business, economics, organisational behaviour, political science, public health, and sociology.
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Class struggle is the active expression of class conflict looked at from any kind of socialist perspective. Karl Marx and Friedrich Engels, leading ideologists of communism, wrote "The [written][1]
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Neoclassical economics refers to a general approach in economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand.
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Instructional capital is a term used in educational administration after the 1960s, to reflect capital resulting from investment in producing learning materials.
Some have objected to this phrasing, which is an elaboration of referring to training as "human capital," either
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Some have objected to this phrasing, which is an elaboration of referring to training as "human capital," either
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Social capital, referring to connections within and between social networks, is a core concept in business, economics, organisational behaviour, political science, public health, and sociology.
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Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national economy as a whole.[1] Macroeconomists seek to understand the determinants of aggregate trends in an economy with particular focus on national income,
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Financial Capital vs. Real Capital
Financial capital refers to the funds provided by lenders (and investors) to businesses to purchase real capital like equipment for producing goods/services.
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Financial capital refers to the funds provided by lenders (and investors) to businesses to purchase real capital like equipment for producing goods/services.
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Human capital refers to the stock of productive skills and technical knowledge embodied in labor. Many early economic theories refer to it simply as labor, one of three factors of production, and consider it to be a fungible resource -- homogeneous and easily interchangeable.
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In economics a social welfare function can be defined as a real-valued function that ranks conceivable social states (alternative complete descriptions of the society) from lowest on up as to welfare of the society.
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Behavioral finance and behavioral economics are closely related fields which apply scientific research on human and social cognitive and emotional biases to better understand economic decisions and how they affect market prices, returns and the allocation of resources.
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In economics, factors of production are resources used in the production of goods and services, including land, labor, and capital.
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Land, labor, and capital
Resource in economics distinguish among such factors of production as:..... Click the link for more information.
The value of life (or price of life) is an economic or moral value assigned to life in general, or to specific living organisms. In social and political sciences, it is the marginal cost of death prevention in a certain class of circumstances.
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Neoclassical economics refers to a general approach in economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand.
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