X-Efficiency

Discipline: Economics

Formulated by American economist HARVEY LEIBENSTEIN (1922-1993), x-efficiency describes the general efficiency of a firm (judged on managerial and technological criteria) in transforming inputs at minimum cost into maximum profits.

Also see: agency theory, managerial theories of the firm, satisficing, scalar principle, parkinson's law, theory of the firm, x-inefficiency

Source:
H Leibenstein, 'Allocative Efficiency vs "X-efficiency"', American Economic Review, vol. LVI (June, 1966), 392-415

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