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 ?
In this article, we apply Hsieh and Klenow's (2009) method to the microdata on the Republic of Korea (hereafter Korea) manufacturing sector to study the evolution of allocative efficiency over a quarter century (1982-2007).
Using panel data of the organized manufacturing industries of the states as well as all-India over a period from 1981-82 to 2010-11, pre-reform period (1981-82 to 1990-91), post-reform-period (1991-92 to 2010-11) and also during the two decades in the post-reform period (1991-92 to 2000-01 and 200102 to 2010-11], we have decomposed TFPG of the organized manufacturing sector into technological progress, changes in technical efficiency, scale effect and allocative efficiency effect.
Allocative efficiency was obtained by dividing economic efficiency by technical efficiency.
Allocative efficiency depends on the initial distribution of resources, which depends on the initial allocation of property rights.
The average technical efficiency, allocative efficiency and cost efficiency scores for the private health centres were 70%, 84% and 59%, respectively.
59) Additionally, allocative efficiency may not be achieved in
Burki and Khan (2005) analyse the implications of allocative efficiency for resource allocation and energy substitutability.
As shown in Table 4, while improvements in both technical and allocative efficiency explained the ALP growth gap between Vietnam and China, the improvement in technical efficiency played a dominant role.
is a harmonic mean of firm TFP and N the number of firms of each group (exiters, entrants, and incumbents), Z is the index of allocative efficiency within each group of firms, and MP denotes the weighted average of the marginal product of each group.
Assuming that farming in order to meet profit should allocate minimal cost of persisted input, or it meant farming successes to meet allocative efficiency.
A degree to which a given auction design manages to maximize the total surplus will be referred to as its allocative efficiency.