Trew, Alex - Centre for Dynamic Macroeconomic Analysis, University … - 2005
capital at cost x(H) > 0. Note that these costs are not invariant to
the level of human capital, and we make the assumption … capital. So both the outlay
required to fund the acquisition of human capital, x, and the cost of screening candidate … households to fund the amount x(H) from their
own resources. For a given agent, expected intermediary profits will be the …