efficiency


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Efficiency

The degree and speed with which a market accurately incorporates information into prices.

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.

efficiency

the relationship between the quantities of factor inputs (labour, materials, etc.) used by a firm and the quantity of output which it is able to produce using these inputs. Where a firm is able to produce the same output using fewer inputs or produce more output using the same quantity of inputs then it has improved its efficiency See PRODUCTIVITY.

efficiency

the relationship between scarce FACTOR INPUTS and OUTPUTS of goods and services. This relationship can be measured in physical terms (TECHNOLOGICAL EFFICIENCY) or cost terms (ECONOMIC EFFICIENCY). The concept of efficiency is used as a criterion in judging how well MARKETS have allocated resources. See MARKET PERFORMANCE, RESOURCE ALLOCATION, ECONOMIZE.
References in periodicals archive ?
The recent trend among state policymakers and utilities in the Southwest is a substantial shift to increased energy efficiency commitments.
For the sake of ratepayers, air quality and public health, the Corporation Commission should vote on May 22 to advance Arizona's Energy Efficiency Standard from 22 percent in 2020 to at least 35 percent by 2030.
Considerable research has identified the market failures and obstacles to customer implementation of energy efficiency measures, e.g., lack of information, lack of easy access in the local market, lack of capital, etc.
/ With respect to the criticisms of evaluation methods, some of those concerns had some validity in the early days of energy program planning (e.g., over-reliance on ex-ante engineering projections, failure to account for "free-riders" who would have adopted the efficiency measures without the programs).
Technical and Scale efficiency: Technical efficiency refers to the efficiency in transforming inputs to outputs.
Furthermore, positive correlation has also been established between efficiency of the firms and their exports.
The proposed amendments are expected to boost development and implementation of the building energy efficiency regulations.
Vermont lawmakers enacted federal appliance and lighting efficiency standards in state statute.
Since 2012 there has been cross-industry improvement, with 88% of operators increasing in efficiency.
In contrast to these measures, efficiency is a more comprehensive measure as it is based on both the inputs and outputs.
Only a small proportion of articles explicitly adopted certain methods for index screening, such as factor analysis and cluster analysis (CA).[sup][9],[10],[11],[12] Moreover, most researches adopted DEA to evaluate hospital efficiency and failed to choose the most appropriate evaluation method according to the actual situation of public hospitals in China.[sup][13]
Regression results reveal low efficiency scores associated with rural schools than urban.