# Capital Formation
A term in macroeconomics to refer to the transfer of savings to [productive](productive-asset.md) endeavours of setting up of financial institutions, private enterprises, fiscal measures, lending activites, development of capital markets, and the development of secondary markets for [financial assets](financial-asset.md). Efficient capital formation is the end goal of [capitalism](capitalism.md) and is a property that developed economies have.

## References
1. Janeway, William H. Doing capitalism in the innovation economy: Markets, speculation and the state. Cambridge University Press, 2012.
1. Fama, Eugene F. "Efficient capital markets: A review of theory and empirical work." The journal of Finance 25, no. 2 (1970): 383-417.
1. Fama, Eugene F., and Kenneth R. French. "Size, value, and momentum in international stock returns." Journal of financial economics 105, no. 3 (2012): 457-472.