Part One. The writings of the accountants: creators of the capital-debt concept -- Part Two. The writings of the economists on the concept of capital -- Part Three. The attacks against the concept of capital-debt.

Firm-level investment is lumpy and volatile but aggregate investment is much smoother and highly serially correlated. These different patterns of investment behavior have been viewed as indicating convex adjustment costs at the aggregate level but non-convex adjustment costs at the firm level....