Engineering human capital: A system of systems modeling approach

Abstract

A system of systems modeling approach can be used to plan and guide implementation of economic revitalization efforts. A key metric of success is the improved outcomes of individuals in terms of standard of living and subjective well-being. Initial results for a latent variable model based on national survey data show a moderate correlation between subjective well-being and objective measures of standard of living, and good fit for a three-factor model that relates economic, security, and social network variables to human capital. Human capital is a production system within the economy; it is equipped and maintained by the education and healthcare systems of the region. This perspective is useful in analyzing and evaluating the system of systems that comprise a regional economy.