allocative efficiency


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allocative efficiency

A measure of economic efficiency which weighs the benefit derived from a particular choice in the distribution of resources. Allocative efficiency perspective addresses the question of whether to perform or expand an activity.

allocative efficiency

(al′ŏ-kāt″ĭv)
In economics and sociology, the extent to which a product or a service, e.g., hemodialysis, is provided to an entire community, rather than just to a subgroup of that community.
References in periodicals archive ?
Our allocative efficiency indexes are presented in section 4.
Of the two kinds of efficiencies, we can, from the sign of the coefficient of FMAP, infer whether allocative efficiency is resulting, but as regards technical efficiency, we will only be able to infer its likelihood from the array of rent-seeking activities indulged in by the states.
The average allocative efficiency of the banks in the sample is 86.
Allocative efficiency, measured in terms of the number of learning opportunities (inputs) needed to produce 100 contingency behavior (outputs), makes clear the differences in the effects of response-independent and response-contingent stimulation.
standard, despite the fact that allocative efficiency would be achieved.
Public funding for R&D allows for allocative efficiency for the initial innovations.
One of our results is that allocative efficiency is monotonically decreasing in the total amount of corruption in monetary terms.
Although technical efficiency refers to failure to operate on the production frontier, allocative efficiency generally refers to the failure to meet the marginal conditions for profit maximization.
To make his case for a mixed economy, Kuttner underscores the tensions that exist between allocative efficiency and two other economic values associated with the names of John Maynard Keynes and Joseph Schumpeter, respectively.
Allocative efficiency means that, in competitive markets, resources tend to be used by those who value them most highly.
The efficiency question is also addressed here, and Nash argues that aggregate output can be increased by eliminating small firms from the industry because of the enhanced allocative efficiency resulting from increased output.
1) It is hoped that competition in the industry will promote economic efficiency including: productive efficiency where services are produced at the least possible cost; allocative efficiency where the services of each firm in the industry are sold in line with costs (strictly speaking marginal costs); and dynamic efficiency which ensures making the best use of resources over time.