This paper sets forth two demand-led macrody­na­mic models of capa­city uti­li­za­ti­on and out­put growth with human capi­tal for­ma­ti­on having a posi­ti­ve impact on labor pro­duc­ti­vity. Two finan­cing mecha­nisms of human capi­tal for­ma­ti­on are con­si­de­red, one in each model. In the first model, public invest­ment in human capi­tal is finan­ced by some part of inco­me tax reve­nu­es, con­fi­gu­ring a further sour­ce of aggre­ga­te demand in addi­ti­on to pri­va­te con­sump­ti­on, govern­ment con­sump­ti­on, and pri­va­te invest­ment in phy­si­cal capi­tal. The second model fea­tu­res public invest­ment in human capi­tal for­ma­ti­on finan­ced by all inco­me tax reve­nu­es sup­ple­men­ted by wor­kers’ own invest­ment in human capi­tal finan­ced through debt. Hen­ce public and pri­va­te invest­ment in human capi­tal con­fi­gu­re further sour­ces of aggre­ga­te demand for­ma­ti­on, together with pri­va­te con­sump­ti­on and invest­ment in phy­si­cal capi­tal. Ana­lo­gously to firms’ desi­red invest­ment in phy­si­cal capi­tal, wor­kers’ desi­red invest­ment in human capi­tal is inde­pen­dent from saving out of cur­rent inco­me. The excess of wor­kers’ desi­red invest­ment in human capi­tal for­ma­ti­on over the public invest­ment in human capi­tal is finan­ced through debt made avai­la­ble by an endo­ge­nous sup­ply of cre­dit money. A key mes­sa­ge of this paper is that the sup­ply of higher human capi­tal-endowed wor­kers does not auto­ma­ti­cally cre­a­te its own demand. The rele­vant policy impli­ca­ti­on is cle­ar: expan­si­o­nary aggre­ga­te demand poli­ci­es are a neces­sary com­ple­ment to expan­si­o­nary aggre­ga­te sup­ply poli­ci­es based on human capi­tal formation.

Keywords: Human capi­tal; public invest­ment; macrody­na­mics; capa­city uti­li­za­ti­on; out­put growth; employ­ment rate.

JEL Codes: E12, E24, E25, O41.