Physical Capital And Human Capital Flow Estimation,and Family Human Capital Invstment In China

We estimate the material capital services(flow)and human capital services(flow),finding that there is a trend that physical capital increasing faster than human capital both of stocks and services.As for human capital in China is in a lower level comparing to other developed countries,China should focus on investment in human capital.Among many factors affecting human capital investment,personality of household affect the household human capital investment,however,there is little literature about it.We raise up the necessity of this research as following: First,our country enter a new growing stage with complex economic environment.Policy maker need more accurate data to support the policy making process.Secondly,new method was released by SNA2008 leading to update the old estimation results.Third,National Bureau of Statistics of China revises the GDP and relative data according to the SNA2008,therefore we need latest estimation results.Fourth,comparing to the well developed method of physical capital services estimation,human capital seem left behind.We need comparable human capital result to physical capital to do productivity analysis.Fifth,ongoing human capital research not cover all the aspects of human capital investment,so we fill the blank to shed light on human capital investment research.This study attempt to organize under the following framework: first to find out a better human capital index to support the productivity analysis;second,based on well developed physical capital services estimation framework to derive human capital services estimation method;third,compare human capital services estimation and physical estimation results to show the human capital and physical capital status in China;finally,under background of the human capital and physical capital comparison,show how the household invest in human capital in micro level.This study includes eight chapters:The first chapter is introduction showing the objective of this paper,the contribution to the literature,the innovation of this paper and the drawback of this paper.The second chapter is literature review section.In this section,we review most relative paper about human capital estimation and physical capital estimation,difference between capital stock and capital services,aggregation and superlative index,user costs theory,and personality economics study.Based on the literature review,we find where we standing and where we could go.The third chapter is framework how to estimate the capital services.In this chapter,we first show the difference between capital services and capital stock.Then we show the necessity to distinguish the capital services from capital stock using China latest data.In the next step,we prove how could it feasible to using well established physical capital services estimation framework to calculate human capital flow,and clarify the ambiguity conception of human capital and physical capital under the same framework.The fourth chapter is physical capital estimation method equation derivation.We identify the difference between the physical capital stock and physical capital services based on OECD physical capital manual and OECD productivity measurement manual.We derive all the estimation equation under OECD recommending assumption and alternative assumption used by ABS.The fifth chapter is human capital estimation method equation derivation.We use the same framework of physical capital services estimation to derive all the equation used to form the human capital services index.We also derive all the term in used and clarify the concept using in the estimation process.The sixth chapter shows the human capital services and physical capital services estimation result.Referring classical literature results about human capital in China,we use the latest data in China to show the human capital status in China,which leads to the same conclusion that human capital may be insufficient in China.Then,we compare our result of physical capital with similar research with China data to show we get robust result under physical capital services estimation method,however,our data result differ from others' due to alternative assumption and parameter choosing.Finally,we show all the result about human capital stocks and human capital services,physical capital stocks and physical capital services,the comparison between physical capital and human capital,and some key components of physical capital and human capital.Chapter 7 shows the household human capital investment behavior affected by household personality traits.Base on classical household human capital investment behavior theory we derive a theoretical model to illustrate how the personality traits affect family human capital investment behavior.Then we use empirical study to demonstrate the effect of personality traits on family human capital investment.We use �Big Five� personality traits measurement,employing the China Family Panel Studies(CFPS)data,finding that Conscientiousness of the �Big Five� personality traits increasing family human capital investment significant as for person with high Conscientiousness score will prefer long-term investment such as human capital investment.The last chapter is a conclusion part,to summarize all this study.Based on our conclusion,we display some policy implication.Additionally,we also shed some light on the further research in this field.The innovation of this study:First,this study uses the combination of human capital cost of users Tornqvist index to build service indicators of human capital in China,which could be employed in the application of productivity analysis and growth accounting analysis.This is the first study use the comparable method with physical capital services estimation to calculate human capital services in the literature.Second,this study results in physical capital services index in China using the latest data based on OECD physical measurement manual and alternative method.The results is the latest time series physical capital services estimation result.Because NBS of China update national GDP and relative data,comparing with others' research results,this study use more suitable data sources.Third,this study is the first literature to employ personality theory in psychology to explain the family human capital investment behavior.Economics recently apply the personality theory in psychology to conduct economics research,however,this study to the literature to fill the blank of how personality traits affect family human capital investment.The shortage of this study:First,this is the first time to estimate the human capital services,therefore there isn't any comparable literature to show the robust of the results in this paper.Second,the physical capital services estimation involve huge amount of raw data with long time series.With data resources limitation,we have to simplify the estimation process with some assumption.With more sufficient data,the results will be revised to getting more accurate ones.Third,human capital investment study use personality scale,however we form the personality traits based on survey data,which is not perfect method to form the personality traits comparing to conduct a special personality traits scale.With better personality scores,the research result will be improved a lot.