Labour income is the single largest component of GDP for many countries. And if capital is what generates cash flows, would this not be evidence for a larger human than physical capital component? My prior is with Eli’s comment, and not trying to estimate human capital will distort the analysis imo.
Labour income is the single largest component of GDP for many countries. And if capital is what generates cash flows, would this not be evidence for a larger human than physical capital component? My prior is with Eli’s comment, and not trying to estimate human capital will distort the analysis imo.