The general subject at this session is the relationships between capital structure and technological progress. Recalling that the process of education can be viewed as an act of investment in people, that educated people are hearers of human capital, we see that this paper has relevance to that subject. For, according to the models presented here, the rate of return to education is greater the more technologically progressive is the economy* This suggests that the progressiveness of the technology has im¬plications for the optimal capital structure in the broad sense* In particular, it may be that society should build more human capital relative to tangible capital the more dynamic is the technology.
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