Production Prices of Human Capital and Human Time

It follows from the definition of production as a circular process that human capital and human time are also products. Production prices calculated as the balanced growth price vector of the dynamic input–output model provide a consistent basis of valuation. For the inclusion of the production of heterogeneous human capital and human time in the dynamic input–output model the production of human capi tal is partitioned into phases and special non-linear coefficients, applicable to a variety of different human careers, are derived to take care of the replacement of human capital as well as of the consumption of persons in retirement.