Heterogeneous Capital views capital as diverse resources with limited uses and interconnections. Lachmann emphasizes heterogeneity in use, not merely physical appearance. When a plan changes, distinguish possible substitution, necessary modifications and resources that find no suitable application.
Lachmann notes that making all equipment from one substance would not eliminate differences in use. An oven, storage vessel and vehicle have different tasks. Heterogeneity is therefore more than a materials list; describe the service a resource should provide and under what conditions. [Lachmann — Capital and Its Structure, I]
Lachmann’s store uses four identical vans for four parts of town. They can be interchanged during planning, but once simultaneous tasks are assigned one breakdown disrupts the whole plan. Distinguishing complements from substitutes requires a plan and a point in time, not just technical specifications. [Lachmann — The Meaning of Capital Structure]
Mises distinguishes resources made useless by a changed goal, those requiring modification and those usable without it. Iron generally allows more processing options than a finished part for a particular machine. Assess redeployment through feasible conversion, time and resources, not salability alone. [Mises — Human Action, XVIII]
Lachmann identifies the problem of a common unit for heterogeneous capital. Machine prices can change their monetary total without adding a machine. This does not prohibit accounting totals; it means a valuation change is no direct proof of changed physical productive capacity. [Lachmann — Capital and Its Structure, I]
Lachmann distinguishes complementarity within one plan from compatibility across the economy. A workshop may have the right equipment while its supplier schedules delivery too late. Check timing between firms; adding well-equipped operations does not automatically make their plans compatible. [Lachmann — The Meaning of Capital Structure]
Lachmann rejects the assumption that new investment only competes with existing capital. New refrigeration may complement a packing line, whereas another identical line may compete for orders. This illustrates different relationships; the effect depends on the particular combination and demand. [Lachmann — Capital and Its Structure, I]
Mises assesses replacement of old equipment through benefits relative to additional expenditure and residual value. A new machine’s lower consumption alone does not decide. Compare the old one’s remaining services, replacement price and feasible new use; a past purchase differs from today’s choice. [Mises — Human Action, XVIII]
A server, power supply and operating staff have different roles; another server alone cannot provide a missing electrical connection. This editorial example applies relationships among means. Specify functions, availability and replacement options; a shared Bitcoin-project budget does not prove a working combination exists. [Lachmann — Capital and Its Structure, I] [Lachmann — The Meaning of Capital Structure]
For the clearest picture, read this entry together with Capital Goods, Roundabout Production, Stages of Production, Economic Calculation, Entrepreneurship. The reverse links also lead from Capital Goods, Stages of Production, Roundabout Production, Malinvestment.