Dynamic efficiency
Concept in economics / From Wikipedia, the free encyclopedia
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In economics, dynamic efficiency is achieved when an economy invests less than the return to capital; conversely, dynamic inefficiency exists when an economy invests more than the return to capital.[1] In dynamic efficiency,[2] it is impossible to make one generation better off without making any other generation worse off. It is closely related to the notion of "golden rule of saving". In relation to markets, in industrial economics, a common argument is that business concentrations or monopolies may be able to promote dynamic efficiency.[3]