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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 MatchesEfficiencyEfficiencySee economic efficiency. Informational 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. Allocative efficiencyAllocative efficiencyRefers to whether or not an allocation is efficient. A change from an allocation that is not efficient to one that is may be termed an "increase" in allocative 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 SuggestionsInformational efficiencyEfficiency Riegle Neal Interstate Banking and Branching Efficiency Act of 1994 Strong form efficiency Semistrong form efficiency Efficiency locus Marginal efficiency of capital Technical inefficiency Engineering efficiency Allocational efficiency Pricing efficiency |
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