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 ?
Elaboration of a study on the evaluation of the technical and economic potential of renewable resources in romania in order to update and meet the targets of renewable energy in 2030, in terms of technical and economic efficiency
Therefore, the present research was designed for the estimation of technical, allocative and economic efficiency in the production of off-season capsicum/bell pepper.
This means an improvement in economic efficiency due to less can transports.
Summary: New electricity tariff to raise economic efficiency, rationalise consumption of natural resources
This will give us the allocative efficiency from which economic efficiency will be estimated as
"While previous plans focused on stability in supply and economic efficiency, the eighth plan put emphasis on environment-friendliness and safety," the ministry noted in the report.
The production efficiency was decomposed into technical, allocative and economic efficiency. It also aimed to find the elasticity score for different farm sizes.
From a June 2015 sociology of law workshop in O[+ or -]ati, Spain, 18 papers consider global economic integration and the regulation of temporary labor migration, temporary labor migration in pursuit of economic efficiency, temporary labor migration and the production of precarity, challenges in realizing decent work for temporary migrant workers, contesting temporariness: status and the social effects of the legal regulation of temporary labor migration, and the global challenge of temporary labor migration: regulatory responses and possibilities.
Financial education is one of the essential criteria of economic efficiency, aiming to make financial decisions and sound investments relating to various financial transactions, he reiterated.
The policy-sequel also recognizes that increases in economic efficiency are not valuable in themselves--that "increases in economic efficiency" (in the monetized sense in which that expression is defined in Part 2A of this article) are morally valuable only to the extent that they are associated with increases in total utility, increases in the satisfaction of preferences, or increases in the extent to which the society's members' have a meaningful opportunity to take their lives morally seriously by fulfilling their moral obligations, developing morally defensible personal conceptions of the good, and leading a life that is consistent with their respective conceptions of the good.
This system is said to be an optimum solution for hose manufacturers wishing to produce hoses of identical wall thickness over a longer period of time, as it ensures high reliability, unparalleled economic efficiency and premium quality, according to the manufacturer.
None are worth developing here, except about economic efficiency. Powell stresses that his argument has nothing to do with economic efficiency, but only with the welfare of sweatshop workers.

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