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.


References in periodicals archive ?
Meanwhile, the country has defended the decision to enforce the new electricity tariff to raise economic efficiency, rationalise consumption of natural resources and boost the contribution of the non-oil sector.
We will determine when to shut it down after comprehensive analysis on economic efficiency and the opinions of the local community in the first half of next year," the energy ministry said.
This increases economic efficiency and improves quality by eliminating unnecessary sliver piecings in the creel of the downstream draw frame.
Aman and Haji (2011) estimated estimate technical, allocative and economic efficiency of rose cut- flower industries in Ethiopia using a Non-Parametric DEA model.
Bowles does not stop at diagnosing the negative impact of inequality on economic efficiency.
Major aim of this Ordinance was to provide for a legal framework to create a business environment based on healthy competition for improving economic efficiency, developing competitiveness and protecting consumers from anti-competitive practices.
Key to a successful implementation of such projects is economic efficiency.
These stresses and strains may cause severe damage during a wind turbine's life cycle that needs to be repaired in order to safeguard the turbine's economic efficiency.
The inherent strength of the rent-seeking market therefore lies in both its economic efficiency and organic unity.
In this volume, he provides the general reader with a critique of two of the primary fallacies underlying dominant economic theory: the definition of economic efficiency and the theory of wage determination.
Economic efficiency has been shown to be an objective method of measuring legislative ideology that supplements traditional measures of normative liberal-conservative ideology (Boozer & Landry, 2009; Boozer, 2008; Boozer, Westley, & Landry, 2008; Kennedy, 2005).
Once constructed, the facility will proceed with testing to verify the reliability, economic efficiency, and operability of an oxygen-blown IGCC system.

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