Almeida, Rita; Carneiro, Pedro - Centre for Microdata Methods and Practice (CEMMAP) - 2005
average knowledge depreciation.
We assume that average human capital in the firm depreciates for two reasons. On the
onehand … knowledge at the beginning of
the period depreciates at rate δ per period. On the other hand, average human capital in
the … specific knowledge. Using the permanent
inventoryformula for the accumulation of human capitalyields the followinglaw of motion …