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X-Efficiency and Technical Efficiency

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  • Button, Kenneth J
  • Weyman-Jones, Thomas G

Abstract

Efficiency measurement has become a very popular field in applied economics in recent years, and with this interest there has been a large intellectual investment in refining the empirical methods available to researchers in the area. In this paper we relate these developments to Harvey Leibenstein's original 1966 insight into the psychological ideas underlying the notion that economic agents may not achieve maximal efficiency in their productive decisions and behavior. Of course, it is always possible to argue that apparent inefficiency only arises from a failure of the observer to realize what it is that is being maximized. However, we evade this easy escape route into non-falsifiable hypothesizing, and instead take at face value the fact that too many empirical studies have come up with substantial measures of inefficiency for us to ignore its importance for normative economics. Copyright 1994 by Kluwer Academic Publishers

Suggested Citation

  • Button, Kenneth J & Weyman-Jones, Thomas G, 1994. "X-Efficiency and Technical Efficiency," Public Choice, Springer, vol. 80(1-2), pages 83-104, July.
  • Handle: RePEc:kap:pubcho:v:80:y:1994:i:1-2:p:83-104
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    Cited by:

    1. I. Haller & H. Grupp, 2009. "Demand by product characteristics: measuring solar cell quality over time," Journal of Evolutionary Economics, Springer, vol. 19(4), pages 487-506, August.
    2. Blaeschke, Frédéric & Haug, Peter, 2014. "Does Intermunicipal Cooperation Increase Efficiency? Evidence from the Hessian Wastewater Sector," IWH Discussion Papers 11/2014, Halle Institute for Economic Research (IWH).
    3. Bal, Frans & Nijkamp, Peter, 1998. "A new scientific challenge in economics : theory building via synthesis," Serie Research Memoranda 0056, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    4. Francesca Cracolici & Piet Rietveld & Peter Nijkamp, 2006. "Assessment of Tourist Competitiveness by analysing Destination Efficiency," Tinbergen Institute Discussion Papers 06-097/3, Tinbergen Institute.
    5. Steven Globerman & Aidan Vining, 2004. "The Outsourcing Decision: A Strategic Framework," International Trade 0404007, EconWPA.
    6. Ritchie, P. C. & Rowcroft, J. E., 1996. "Choice of metric in the measurement of relative productive efficiency," International Journal of Production Economics, Elsevier, vol. 46(1), pages 433-439, December.
    7. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2001. "Relative efficiency of European airports," Transport Policy, Elsevier, vol. 8(3), pages 183-192, July.
    8. Kerstens, K., 1996. "Technical efficiency measurement and explanation of French urban transit companies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(6), pages 431-452, November.
    9. Fernando Antonio Slaibe Postali, 2014. "Oil windfalls and tax inefficiency: evidence from Brazil," Working Papers, Department of Economics 2014_02, University of São Paulo (FEA-USP).
    10. Li-Gang Liu & Changchun Hua, 2010. "Risk-return Efficiency, Financial Distress Risk, and Bank Financial Strength Ratings," Working Papers id:2944, eSocialSciences.
    11. Changchun Hua & Li-Gang Liu, 2010. "Risk-return Efficiency, Financial Distress Risk, and Bank Financial Strength Ratings," Finance Working Papers 22756, East Asian Bureau of Economic Research.
    12. Bal, Frans & Nijkamp, Peter, 2001. "In search of valid results in a complex economic environment: The potential of meta-analysis and value transfer," European Journal of Operational Research, Elsevier, vol. 128(2), pages 364-384, January.
    13. Lambsdorff, Johann, 2001. "How corruption in government affects public welfare: A review of theory," Center for European, Governance and Economic Development Research Discussion Papers 9, University of Goettingen, Department of Economics.

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