ontinues until the end as the discount Chapter 2: Fast Forward 1/06/16 20 period approaches zero. Depreciation increases absolutely each year, and increases even faster in ratio to capital. What I have just modeled is depreciation rising ex...
Ben-Porath
Named in 11 passages across 1 document.
Mentions of Ben-Porath in the public Epstein records, with citations.
Being named in these documents is not an accusation or evidence of wrongdoing. This page reflects only what the public records literally contain, with citations to the original sources.
Where Ben-Porath appears
11 total
epreciation is essentially like amortization. Accounting tends to practice straight-line depreciation over standard depreciation periods. A well-known refinement, allowed but not much practiced in business, is called current cost accounting...
, whether in realized work currently created or from capital in place through human depreciation. That’s how I came to the pay rule. We see why it ought to startle economists. Macroeconomic tradition teaches the doctrine that wage measures...
The boss earns ten times as much. Human capital for each is one year’s pay, or even less in the unlikely case that invested consumption continues to the end, less one year’s discount. If pay measured work, rate of return (work/human capital...
g human capital. That would stand biology on its head. Biology is precisely about replacing and maintaining us. Unproductive consumption, for which there seem to be parallels in other species, is something biology has yet to justify. It can...
…s textbooks or tuition or job training (collectively called “schooling” by Mincer) invested in human capital. Ben-Porath knew that, as had others before, but reasoned that investment in anything must stop when not enough time remains for re...
…realistically balanced portfolio. Solving the Age-Wage Puzzle I will now try to solve a feature that troubled Ben-Porath and has troubled many economists since. I call it the age-wage puzzle. Age-wage profiles are published reports comparin...
t I’ll come to in Chapter 6. I call it the Ben-Porath equation, although he drew it from the Schultz-led consensus. It is really a summary of the first four of the equations in his 1967 paper taken together. This explains my critique of the...
…1/06/16 11 input of nurture and schooling, and then depreciates gradually to zero just as buildings do. Yoram Ben-Porath combined these ideas and more in a masterly lifecycle model published in 1967. We’ll get to it soon. Schultz called the...
en I could have done with only half as many charts, and made this a book about free growth only. Any fool knows that a book should pick a focus. The data confirming Mill’s idea would have made a spectacular finale. Why undermine my own case...
e the effectiveness of thrift with neither the lag nor the well-known problems of book depreciation? I will show the math of my simultaneous rates method in Chapters 4 and 5. Chapter 4 reasons from the Y = C + I equation, even though I don’...
Also named alongside
Want context across all of these passages at once?
Ask the documents about Ben-Porath