Dynamic inefficiency occurs when an intertemporal economy allows for reallocation of resources to achieve Pareto improvement, indicating excessive saving and capital accumulation with incorrect allocation of consumption across time.
Explore the persistent increase in per capita aggregate output and in the aggregate physical capital per worker, the history, types, theories, and factors influencing economic growth across different countries.
Mercantilism is an economic theory from the 16th to 18th centuries focusing on the accumulation of capital and wealth through a balance of payments surpluses and protectionist policies.
The Solow Growth Model explains economic growth through the accumulation of capital, considering factors such as labor, capital stock, savings, and depreciation.
A neoclassical model that attributes long-term economic growth to exogenous technological progress, capital accumulation, and labor force growth, but eventually emphasizes the diminishing returns to capital investment.
