In economics, putty-putty describes an attribute of capital in financial models. Putty-putty capital can be transformed from flexible capital into durable goods then back again.[1] 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.[2]

External links

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

References

  1. ^ "Putty-Clay Model - an overview | ScienceDirect Topics". www.sciencedirect.com. Retrieved 2021-10-23.
  2. ^ Hu, Sheng Cheng (1972). "Putty-Putty Versus Putty-Clay: A Synthesis". International Economic Review. 13 (2): 324–341. doi:10.2307/2526028. ISSN 0020-6598. JSTOR 2526028.
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