This paper reexamines the condition <InlineEquation ID="Equ1"> <EquationSource Format="TEX">$E\{\ln r\} \ln $</EquationSource> </InlineEquation> (1 + n), which Zilcha (1991) presents as a necessary and sufficient condition for dynamic inefficiency of stationary allocations in overlapping generation models with stochastic production. We show that this condition is necessary but not...</equationsource></inlineequation>