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.

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.

See EFFICIENCY, COST FUNCTION.

References in periodicals archive ?
Impacts of socioeconomic and other farm specific factors on technical, allocative and economic inefficiency of farms were also investigated.
to execute only those research projects whose predicted allocative benefits (the allocative benefits they would generate by increasing the economic efficiency not only of the choice under consideration but of other choices as well by increasing the correctness of relevant theoretical results and the accuracy of relevant parameter-estimates) exceed their predicted allocative cost (the allocative value that the resources devoted to any relevant research-project would generate in their alternative employs plus the allocative cost of delaying any policy-decision to enable the decision maker to take advantage of the relevant research-results plus the economic inefficiency the government generates to finance the relevant research-project).
The present study made an attempt to investigate the impact of various socioeconomic and farm-specific factors on the technical, allocative, and economic inefficiency of the tuberose cut- flower in district Kasur.
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.
The current government has reversed the liberalizing reforms that the prior regime had instituted- potentially to replace them with trade restrictions, price controls and maintaining subsidies- [Such policies are] a recipe for economic inefficiency and stagnation.
Criticized by economists for economic inefficiency, regulations have the advantage of making it difficult to see that politicians are causing energy-price increases.
Summary: Iran's plan to cut costly fuel and food subsidies brings to a head a debate over economic inefficiency that has raged for years but has become urgent because of the threat of more UN sanctions, analysts say.
Greater inflation uncertainty resulting from higher inflation may lead to economic inefficiency, lower real investment, and unemployment, thereby reducing economic growth.
Policy makers are targeting poor handoffs and communication among clinicians as major sources of economic inefficiency.