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Economic efficiency |
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Economic efficiencyThe extent to which a given set of resources is being allocated across uses or activities in a manner that maximizes whatever value they are intended to produce, such as output, market value, or utility. Contrasts with engineering efficiency, which focuses within a single activity on the output it produces per unit input.Similar MatchesInformational efficiencyInformational efficiencyThe speed and accuracy with which prices reflect new information. Capital market efficiencyCapital market efficiencyThe degree to which the present asset price accurately reflects current information in the market place. See: Efficient market hypothesis. Pricing efficiencyPricing efficiencyAlso called external efficiency; a market characteristic that prices at all times fully reflect all available information that is relevant to the valuation of securities. Technical inefficiencyTechnical inefficiencySee X-efficiency. X-efficiencyX-efficiencyThe ability of a firm to get maximum output from its inputs. Failure to do so, called X-inefficiency or technical inefficiency, may be due to lack of incentives provided by competition. Improvement in X-efficiency is one hypothesized source of gain from trade. Term is due to Leibenstein (1966). Further SuggestionsEfficiencyEfficiency Allocative efficiency Allocational efficiency Strong form efficiency Riegle Neal Interstate Banking and Branching Efficiency Act of 1994 Marginal efficiency of capital Semistrong form efficiency Efficiency locus Engineering efficiency Informational efficiency |
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