Based on the AMSZ (1989) criterion, we exploit comprehensive datasets to estimate the dynamic efficiency of world economy. The results reveal that the representative economies conform to a "U-shaped pattern" in their evolution of capital accumulation. That is, a period of decreasing efficiency (over-accumulation) followed by increasing efficiency (deaccumulation). Contrary to previous evidence, the bias-corrected estimates show that major economies have been inconsistently dynamically efficient. As a prime example, China today is unquestionably in a state of severe dynamic inefficiency, and the inefficient status is likely to continue in near future. We also document the limitations of the AMSZ criterion and point out promising research directions in the efficiency literature.

This is the empirical study that focuses on the local government's competition to attract companies through the auction of the land use right. In the existing researches on the competition between local governments tended to focus on the competition of growth rate through the performance evaluation system, or the tax competition for the attracting companies. And in China, where the system of property tax is still underdeveloped and the local government cannot independently set the tax rate. Therefore, in this study, we have focused on the some kind of dumping activity of local governments in the auction of land use rights, to attract industrial companies, and empirically test this hypothesis by the spatial lag model.

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