IDEAS home Printed from https://ideas.repec.org/a/beh/jbepv1/v1y2017i2p25-30.html
   My bibliography  Save this article

X-efficiency: economists and managers view it differently

Author

Listed:
  • Robert Mefford

    (University of San Francisco)

Abstract

Leibenstein’s X-efficiency theory offers a view of productivity that differs from traditional neoclassical economics in terms of whether inefficiency exists, what causes it, and how to eliminate it. Extensive discussion of X-efficiency has occurred among economists but little has been said by the group that in the theory is primarily responsible for reducing inefficiency —managers of firms—. This article examines the viewpoints of economists and managers on the basic tenets of X-efficiency theory and what the policy implications for firms and society are of these differing views.

Suggested Citation

  • Robert Mefford, 2017. "X-efficiency: economists and managers view it differently," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(2), pages 25-30, September.
    • Handle: RePEc:beh:jbepv1:v:1:y:2017:i:2:p:25-30
    as

    Download full text from publisher

    File URL: http://sabeconomics.org/journal/RePEc/beh/JBEPv1/articles/JBEP-1-2-4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard B. Freeman & James L. Medoff, 1979. "The Two Faces of Unionism," NBER Working Papers 0364, National Bureau of Economic Research, Inc.
    2. Mefford, Robert N, 1986. "Introducing Management into the Production Function," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 96-104, February.
    3. Kwan, Simon H., 2006. "The X-efficiency of commercial banks in Hong Kong," Journal of Banking & Finance, Elsevier, vol. 30(4), pages 1127-1147, April.
    4. Marvin E. Rozen, 1985. "Maximizing Behavior: Reconciling Neoclassical and X-Efficiency Approaches," Journal of Economic Issues, Taylor & Francis Journals, vol. 19(3), pages 661-685, September.
    5. Stigler, George J, 1976. "The Xistence of X-Efficiency," American Economic Review, American Economic Association, vol. 66(1), pages 213-216, March.
    6. Dean, James W & Perlman, Mark, 1998. "Harvey Leibenstein as a Pioneer of Our Time," Economic Journal, Royal Economic Society, vol. 108(446), pages 132-152, January.
    7. Clark, Jeffrey A & Siems, Thomas F, 2002. "X-Efficiency in Banking: Looking beyond the Balance Sheet," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 34(4), pages 987-1013, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:zbw:bofrdp:2007_011 is not listed on IDEAS
    2. Michael Perelman, 2011. "Retrospectives: X-Efficiency," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 211-222, Fall.
    3. Claudia Curi & Ana Lozano-Vivas, 2015. "Financial center productivity and innovation prior to and during the financial crisis," Journal of Productivity Analysis, Springer, vol. 43(3), pages 351-365, June.
    4. Kauko, Karlo, 2009. "Managers and efficiency in banking," Journal of Banking & Finance, Elsevier, vol. 33(3), pages 546-556, March.
    5. Claudia Curi & Paolo Guarda & Ana Lozano-Vivas & Valentin Zelenyuk, 2011. "Is foreign-bank efficiency in financial centers driven by homecountry characteristics?," BCL working papers 68, Central Bank of Luxembourg.
    6. Tabak, Benjamin M. & Langsch Tecles, Patricia, 2010. "Estimating a Bayesian stochastic frontier for the Indian banking system," International Journal of Production Economics, Elsevier, vol. 125(1), pages 96-110, May.
    7. Claudia Curi & Paolo Guarda & Ana Lozano-Vivas & Valentin Zelenyuk, 2013. "Is foreign-bank efficiency in financial centers driven by home or host country characteristics?," Journal of Productivity Analysis, Springer, vol. 40(3), pages 367-385, December.
    8. Byma, Justin P. & Tauer, Loren W., 2007. "Farm Inefficiency Resulting from the Missing Management Input," Working Papers 127008, Cornell University, Department of Applied Economics and Management.
    9. Fernando Antonio Slaibe Postali, 2016. "Oil windfalls and X-inefficiency: evidence from Brazil," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(5), pages 699-718, October.
    10. Nick Zubanov & W.S. Siebert, 2009. "Management economics in a large UK retailer," CPB Discussion Paper 125, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Stephen M. Miller & Terrence M. Clauretie & Thomas M. Springer, 2006. "Economies Of Scale And Cost Efficiencies: A Panel‐Data Stochastic‐Frontier Analysis Of Real Estate Investment Trusts," Manchester School, University of Manchester, vol. 74(4), pages 483-499, July.
    12. Vaneet Bhatia & Sankarshan Basu & Subrata Kumar Mitra & Pradyumna Dash, 2018. "A review of bank efficiency and productivity," OPSEARCH, Springer;Operational Research Society of India, vol. 55(3), pages 557-600, November.
    13. repec:eee:labchp:v:2:y:1986:i:c:p:1039-1089 is not listed on IDEAS
    14. Forsund, Finn R. & Sarafoglou, Nikias, 2005. "The tale of two research communities: The diffusion of research on productive efficiency," International Journal of Production Economics, Elsevier, vol. 98(1), pages 17-40, October.
    15. Indraneel Dasgupta, 2005. "Consistent firm choice and the theory of supply," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 26(1), pages 167-175, July.
    16. Diego A. Restrepo-Tobón & Subal C. Kumbhakar, 2013. "Profit efficiency of U.S. commercial banks: a decomposition," Documentos de Trabajo de Valor Público 10939, Universidad EAFIT.
    17. Worthington, Andrew C. & Zelenyuk, Valentin, 2018. "Data envelopment analysis, truncated regression and double-bootstrap for panel data with application to Chinese bankingAuthor-Name: Du, Kai," European Journal of Operational Research, Elsevier, vol. 265(2), pages 748-764.
    18. Muliaman Hadad & Maximilian Hall & Karligash Kenjegalieva & Wimboh Santoso & Richard Simper, 2011. "Banking efficiency and stock market performance: an analysis of listed Indonesian banks," Review of Quantitative Finance and Accounting, Springer, vol. 37(1), pages 1-20, July.
    19. Altman, Morris, 2001. "When green isn't mean: economic theory and the heuristics of the impact of environmental regulations on competitiveness and opportunity cost," Ecological Economics, Elsevier, vol. 36(1), pages 31-44, January.
    20. Antonioli, Davide & Mazzanti, Massimiliano, 2017. "Towards a green economy through innovations: The role of trade union involvement," Ecological Economics, Elsevier, vol. 131(C), pages 286-299.
    21. Roger Frantz, 2017. "Rationality, globalization, and X-efficiency among fi nancial institutions," Chapters, in: Morris Altman (ed.), Handbook of Behavioural Economics and Smart Decision-Making, chapter 15, pages 275-289, Edward Elgar Publishing.
    22. Klaassen, F.J.G.M. & Magnus, J.R., 2006. "Are Economic Agents Successful Optimizers? An Analysis Through Strategy in Tennis," Other publications TiSEM 73e12d86-8fe4-4a87-9181-7, Tilburg University, School of Economics and Management.

    More about this item

    Keywords

    X-efficiency; management; productivity; socio-technical theory; economic development;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D20 - Microeconomics - - Production and Organizations - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:beh:jbepv1:v:1:y:2017:i:2:p:25-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SABE (email available below). General contact details of provider: https://edirc.repec.org/data/sabeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.