Simulations of Optimal Human Capital and Total Factor Productivity in Universities

Authors : Ahmet KARA

Pages : 49-56

Doi:10.5961/higheredusci.1083608

View : 40 | Download : 10

Publication Date : 2023-04-30

Article Type : Research Paper

Abstract :In this paper, we develop models of university capital in disaggregated and aggregated forms and simulate the trajectories of human/ non-human capital and total factor productivity in universities. The capital employed by a representative university is decomposed into two composite human capital and non-human capital dimensions, each of which is further disaggregated into some sub-dimensions. We first present a sketch of a disaggregated model for illustrative purposes and then develop an aggregated model for the simulation of the key variables in the system. We incorporate an investment support insert ignore into journalissuearticles values(subsidy); parameter into the model, the optimal value of which is computationally determined. Based on the optimal value of this decision variable, the trajectories of human/non-human capital and total factor productivity are obtained. Though the exercise constructed in the paper is a particular or limited one, the model is highly suitable for generalized exercises with multiple decision variables and multidimensional objective functions capturing a rich variety of different possibilities in real life. The optimality and simulation exercises of this kind could help the university managers to design optimal decision systems to achieve the university objectives in a best possible manner in dynamic settings.
Keywords : Üniversiteler, Optimal sermaye, toplam faktör verimliliği, simülasyonlar

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