Journal of Financial Economics Vol. 4 No. 1 1977
Human capital and capital market equilibrium
Abstract
This paper finds that extending popular two-parameter models of capital market equilibrium to allow for the existence of non-marketable human capital does not provide better empirical descriptions of the expected return-risk relationship for marketable securities than those that come out of the simpler models. This conclusion arises from the fact that relationships between the return on human capital and the returns on various marketable assets are weak, so that the model that includes human capital leads to estimates of risk for marketable assets indistinguishable from those of the simpler models.
- DOI
- 10.1016/0304-405x(77)90038-1
- Volume
- 4
- Issue
- 1
- Pages
- 95-125
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref