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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. 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.
    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. Kenneth Button & Thomas Weyman‐Jones, 1994. "Impacts Of Privatisation Policy In Europe," Contemporary Economic Policy, Western Economic Association International, vol. 12(4), pages 23-33, October.
    5. Steven Globerman & Aidan Vining, 2004. "The Outsourcing Decision: A Strategic Framework," International Trade 0404007, University Library of Munich, Germany.
    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. 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.
    8. Jeroen C. J. M. van den Bergh & Kenneth J. Button, 1997. "Meta-analysis of Environmental Issues in Regional, Urban and Transport Economics," Urban Studies, Urban Studies Journal Limited, vol. 34(5-6), pages 927-944, May.
    9. Lambsdorff, Johann, 2001. "How corruption in government affects public welfare: A review of theory," University of Göttingen Working Papers in Economics 9, University of Goettingen, Department of Economics.
    10. 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.
    11. 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).
    12. Astrid Cullmann & Maria Nieswand & Julia Rechlitz, 2017. "Productive Efficiency and Ownership When Market Restructuring Affects Production Technologies," Discussion Papers of DIW Berlin 1641, DIW Berlin, German Institute for Economic Research.
    13. Maria Francesca Cracolici & Peter Nijkamp & Piet Rietveld, 2008. "Assessment of Tourism Competitiveness by Analysing Destination Efficiency," Tourism Economics, , vol. 14(2), pages 325-342, June.
    14. Esteve Mora, F. & Muñoz De Bustillo Llorente, R., 2004. "Mitos y falacias populares en el debate acerca de los sistemas de pensiones/Myths and Fallacies in the Debate About the Future of Pension Systems," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 22, pages 289-316, Agosto.
    15. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2001. "Relative efficiency of European airports," Transport Policy, Elsevier, vol. 8(3), pages 183-192, July.
    16. Li-Gang Liu & Changchun Hua, 2010. "Risk-return Efficiency, Financial Distress Risk, and Bank Financial Strength Ratings," Working Papers id:2944, eSocialSciences.
    17. Khan, Anupriya & Krishnan, Satish, 2019. "Conceptualizing the impact of corruption in national institutions and national stakeholder service systems on e-government maturity," International Journal of Information Management, Elsevier, vol. 46(C), pages 23-36.
    18. 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.
    19. Raymond J.G.M. Florax & Henri L.F. de Groot & Ruud A. de Mooij, 2002. "Meta-analysis: A Tool for Upgrading Inputs of Macroeconomic Policy Models," Tinbergen Institute Discussion Papers 02-041/3, Tinbergen Institute.

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