<p>I know that if capital is below the golden rule level in the Solow model, then we are dynamically efficient, and vice versa.</p>

<p>How is that proven?</p>

<macroeconomics>
How to prove dynamic inefficiency in the Solow model?
Kali
# How to prove dynamic inefficiency in the Solow model?

(Asked by: username_0 on 2018-01-10)

I know that if capital is below the golden rule level in the Solow model, then we are dynamically efficient, and vice versa.

How is that proven?

**Tags:** macroeconomics

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## 0 answers

