economics Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and intera ...

, putty-putty describes an attribute of capital in

financial models Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of Production (economics), production, Distribution (economics), distribution, and Consumption (economics) ...

. Putty-putty capital can be transformed from flexible

capital Capital may refer to: Common uses * Capital city, a municipality of primary status ** List of national capital cities * Capital letter, an upper-case letter Economics and social sciences * Capital (economics), the durable produced goods used f ...

into

durable goods In economics, a durable good or a hard good or consumer durable is a good that does not quickly wear out or, more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks could be consid ...

then back again. This contrasts with putty-clay capital which can be converted from flexible capital into durable goods but which cannot then be converted back into re-investable capital.

External links

Models of Energy Use: Putty-Putty Versus Putty-Clay

References

{{econ-stub Capital (economics)