Physical capital
Physical capital (economics) refers to
infrastructural capital and
natural capital in some ambiguous combination. As these are combined in process-specific and firm-specific ways that
neoclassical macro-economics does not differentiate at its level of analysis, it is common to refer only to
physical vs.
human capital and seek so-called "balanced growth" that
develops both in tandem.
Such analyses, however, fail to make distinctions considered critical by many modern economists:
Accordingly the designation as
physical has come into some recent dispute.