economic efficiency

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Market Efficiency

The extent to which the price of an asset reflects all information available. Economists disagree on how efficient markets are. Followers of the efficient markets theory hold that the market efficiently deals with all information on a given security and reflects it in the price immediately, and that technical analysis, fundamental analysis, and/or any speculative investing based on those methods are useless. On the other hand, the primary observation of behavioral economics holds that investors (and people in general) make decisions on imprecise impressions and beliefs, rather than rational analysis, rendering markets somewhat inefficient to the extent that they are affected by people.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

economic efficiency

an aspect of PRODUCTION that seeks to identify, for a given level of OUTPUT, the combination of FACTOR INPUTS that minimizes the COST of producing that output. More broadly, economic efficiency is equated with the effectiveness of RESOURCE ALLOCATION in the economy as a whole such that outputs of goods and services fully reflect consumer preferences for these goods and services as well as individual goods and services being produced at minimum cost through appropriate mixes of factor inputs.


Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The results showed a significant negative effect of education on technical and economic inefficiency. It shows the reduction in technical and economic inefficiency as a result of an increase in schooling years.
The coefficient of experience was negative and significant for allocative and economic inefficiency, and it confirmed the hypothesis that efficiency improved for an experience farmer and in line with Bozoglu and Ceyhan (2007), Donkoh et al.
All of these categories of economic inefficiency are "relative total allocative cost" (RTLC) resource misallocations--i.e., all result because resources are allocated in economically-inefficient proportions among uses in a single category in different ARDEPPSes or between two categories of use.
"This additional shipping time and cost constitute an economic inefficiency that would follow from the elimination of competition between Hillshire and Tyson."
This "separation of ownership and control" as it came to be known gave rise to serious economic inefficiency. It meant that the bulk of U.S.
"Economic inefficiency, unsound policies, and unfavorable international conditions as the result of the sanctions are the three main reasons behind our current economic situation," he said.
"The business sector's statement after the brutal campaign that it waged to block the state's purchase of [Spanish transnational] Repsol (NotiSur, May 31, 2013), which would have allowed energy-market regulation, seeks to obtain handouts to expand its political power and correct its administrative and economic inefficiency by eliminating labor rights," wrote Mario Huaman Rivera, secretary general of the Confederacion General de Trabajadores del Peru (CGTP).
Remaking Scarcity: From Capitalist Economic Inefficiency to Economic Democracy
According to Barroso, the real culprit for the crisis is not the EU, but rather what he termed "a Bermuda triangle of private imprudence, public indulgence and economic inefficiency."
BAN is the world's only organization focused on confronting the global environmental justice and economic inefficiency of toxic trade and its devastating impacts.
Ambassador Andrew Tesoriere, the Head of the OSCE Centre in Bishkek, said: "The distribution, use and management of water resources in Kyrgyzstan is characterized by certain economic inefficiency and linked with communal disputes.