ABSTRACT

The concept of dynamic efficiency as economists express it and consider the management of resources over time: between current and future consumption. It requires the management of resources over time in such a way as to continually shift the production possibilities curve to the right by De Soto. Governments may use leading indicators of dynamic efficiency, which focused on patterns of performance or organizational characteristics believed to be associated with dynamic efficiency. Demarcating property rights and monetizing the benefits flowing from capital assets, privatization leads to improve investment decisions and gains in dynamic efficiency. Measures of Gross Domestic Product (GDP) provide perhaps the best established indication of the increasing capacity of a country or region. The policies we considered from technical fixes such as cost-benefit analysis and sustainability indicators to ambitious policy interventions like privatization and nationalization on the other are intended to improve the dynamic efficiency of capital investment decisions.