what the stylized model to be developed below does is to focus on the cmcial role which human capital accumulation plays in the process needless to say financial capital is important and some models in the endogenous inequality literature have indeed focused on that where imperfect capital markets result in some the rich being able to borrow funds to invest in worthwhile projects and receive handsome returns on them and others the poor not matsuyama the distribution of financial assets is of course an important consideration that could have serious implications for the course and character of development at the level of an individual human capital accumulation principally education but also health raises his or her productivity and hence income