Capital Consumption
Capital consumption measures the value of fixed capital used up through depreciation, wear, or obsolescence during a period.
Capital-consumption, maintenance, and physical-capital terms used in accounting for productive assets.
Capital Consumption and Maintenance covers capital formation, investment spending, saving behavior, productivity, depreciation, obsolescence, and public investment funds used in finance and macro analysis.
Use these pages when productive capacity, replacement investment, capital intensity, productivity, or investment demand changes growth, margins, valuation, or public-sector investment assumptions. It sits inside Capital Stock, Formation, and Investment, so readers can move up when the broader economics context matters.
This landing page points readers toward Capital Consumption, Net Capital Formation, Physical Capital, and Physical Capital Maintenance. Choose the narrower page when the term changes the evidence source, calculation, institution, market convention, risk exposure, or decision being made.
| Area | Use it for |
|---|---|
| Capital Consumption | Capital consumption measures the value of fixed capital used up through depreciation, wear, or obsolescence during a period. |
| Net Capital Formation | Net capital formation equals new capital investment after subtracting capital consumption, showing additions to productive capacity. |
| Physical Capital | Physical capital consists of tangible productive assets such as machinery, buildings, infrastructure, and equipment. |
| Physical Capital Maintenance | Physical capital maintenance defines profit after preserving an entity’s productive operating capacity rather than only its money capital. |
Capital and productivity explanations are educational and do not recommend a project, security, fund, or allocation.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Capital consumption measures the value of fixed capital used up through depreciation, wear, or obsolescence during a period.
Net capital formation equals new capital investment after subtracting capital consumption, showing additions to productive capacity.
Physical capital consists of tangible productive assets such as machinery, buildings, infrastructure, and equipment.
Physical capital maintenance defines profit after preserving an entity's productive operating capacity rather than only its money capital.