Physical capitalPhysical 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.