Optimal Dynamic Decision Model on Firm Social Capital Investment

By taking account of values earned by social capital and corresponding cost, thi s paper aims to establish an optimal social capital investment dynamic decision model of a firm. This model also discusses the relationships between optimized l evel of social capital investment and market interest rate, time cost of social capital and wage rate. This model not only provides a framework for decision ana lysis on social capital investment, but also is a useful tool for strategic poli cy analysis.