Adam Smith traced the source of opulence of nation, which he called capital, to the uninterrupted efforts of every man to better his condition. Today we define wealth as the item that has some economic substance, a value such that this wealth can be used for several intended purposes, in modern economics, for consumption as theoretically glorified by the Utility Maximization Theorem (Arrow-Debreu). In this chapter, the reader is introduced to the modern idea of net wealth held by households and entities. The amount of wealth as at 2017 is given as US$ 250 trillion after all liabilities are subtracted from total wealth. In this context, Calvin’s contribution of wealth as God’s gift to man is referred to, which provides a continuity with Islam’s claim that wealth belongs to God, and He apportions who begets it.
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Evaluating Privatisation, Regulation and Liberalisation in the EU
Edited by Massimo Florio
Edited by Colin Fenwick and Valérie Van Goethem
Colin Fenwick and Valérie Van Goethem
Architecture and Urban Competitiveness
Peter K. Kresl and Daniele Ietri
Edited by Geraint Johnes, Jill Johnes, Tommaso Agasisti and Laura López-Torres
A Critical Assessment
Matthias Finger and Kenneth Button
Geraint Johnes, Jill Johnes and Laura López-Torres
The evaluation of the returns to investments in human capital has been at the core of the economics of education since the seminal work of Theodore Schultz published in 1961. The most significant methodological advances have come in parallel with more general developments in applied microeconometrics, such as the particular interest in issues of causality and unobserved heterogeneity. The new empirical findings document a widespread decline in rates of return to education over time. In this chapter we review some developments and present new international comparative results on the heterogeneity of returns to education. Apart from reviewing endogeneity and heterogeneity issues, we also pay attention to the main findings on return to early years education and returns to overeducation.