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.

See EFFICIENCY, COST FUNCTION.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
"Increasing transport volumes, the shift of global trade flows and the fast-growing trend of economically efficient transport chains can only be faced by intelligent digitalisation," Schmickl told The Slovak Spectator.Now, the Slovak logistics market is highly influenced by the development of other European markets.
Economists see it as superior to command-and-control instruments to achieve economically efficient outcomes.
The economically efficient and robust Pax2Go version of the Z100 is designed and pre-certified for standard A320 and B737 configurations with lead times of as short as three weeks from order to delivery.
It considers what higher educationAEs mission is in globalizing knowledge-based economies, in the context of the race between the contributions of research creating new knowledge and the need by the rest of the population to acquire skills to keep up; the level of total investment in higher education financed by both private and public sources that is economically efficient for growth and broader development; and how far the degree of privatization in the financing of public and private higher education should go if it is to be economically efficient in serving the greater good.
He noted that as Afghanistan is a land-locked country, and said, "Chabahar Port will be the shortest and most economically efficient way for the access to the high seas."
It makes a considerable contribution to ensuring reliable and economically efficient deburring processes.
Sustainable production is the creation of goods and services using processes and systems that are: non-polluting, conserving of energy and natural resources, economically efficient, safe and healthful for workers, communities and consumers.
The new procedure will also be economically efficient, as Egyptian buses are much cheaper than their Turkish counterparts.
A National Grid spokesman said: "Constraint payments are the most economically efficient way to balance the system while we await improvements to the electricity network."
"The aircraft's retirement paves the way for newer, more efficient aircraft." Since 2008, Delta has removed or retired more than 350 aircraft from its fleet including 50-seat CRJ-200s; Saab 340s and DC-9s; while adding economically efficient, proven-technology aircraft such as the Boeing 777-200LR; two-class, 65 and 76-seat regional jets and variants of the 737 and 717, largely on a capacity-neutral basis.
The Council stresses the need to find a "reasonable and economically efficient" solution.
From this location, Schmidt will provide economically efficient solutions for storage and warehousing, handling and shipping of a multitude of bulk goods such as polyethylene, polypropylene, catalysts and additives for the chemical and petrochemical industry.

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