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The Financing Of The Productive Service Through Hcc

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  • Jiří Mihola
  • Radim Valenčík

Abstract

The use of HCC in areas of acquisition, utilization, and preservation of human capital. Economic effects of such sectors – acceleration of professional fulfillment, better professional performance, longer zenith and horizon of productive fulfillment. Proposal and substantiation of the HCC based on the transferred price to ensure that economic effects through the relevant mechanisms (and not on the basis of the institutional system entities) serve as the source of financing for the entities that contributed to them and are distributed based on the contribution of such entities to the achievement thereof. A transferred price is a contract, where a productive service recipient makes payments based on the potential benefits accrued as a result of the productive service and based on the amount of returns generated from the productive service – directly to the productive service provider. Effects of some productive services only materialize in the form of longer horizon of productive fulfillment.

Suggested Citation

  • Jiří Mihola & Radim Valenčík, 2014. "The Financing Of The Productive Service Through Hcc," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 786-797.
    • Handle: RePEc:isp:journl:v:8:y:2014:i:1:p:786-797
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    References listed on IDEAS

    as
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    2. Barr, Nicholas, 2012. "Economics of the Welfare State," OUP Catalogue, Oxford University Press, edition 5, number 9780199297818.
    3. Lleras,Miguel Palacios, 2004. "Investing in Human Capital," Cambridge Books, Cambridge University Press, number 9780521828406, September.
    4. Herschel I. Grossman & Minseong Kim, 1998. "Human Capital and Predation: A Positive Theory of Educational Policy," NBER Working Papers 6403, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    human capital contracts; transferred price; productive service;
    All these keywords.

    JEL classification:

    • A - General Economics and Teaching

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