X-efficiency and allocative efficiency: what have we learned?

Article Abstract:

Harvey Leibenstein's theory of nonallocative efficiency has been criticized since its introduction in 1966. Empirical studies on X-efficiency support Leibenstein's theory, but more work is needed in such areas as micro-micro economics. Critics of this theory have based their opinions on assumptions and deductive logic rather than empirical research. Critics erroneously have assumed that the socially optimum output rate must consider both leisure and commodities and that US productivity has not declined.

Author: Frantz, Roger
Evaluation, Economic research, Welfare economics

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State infrastructure and productive performance

Article Abstract:

The impact of state infrastructure on state productive performance is investigated. A cost-function framework is applied to state-level data for domestic manufacturing. Analysis is based on cost-side marginal products and productivity-growth measures. Results suggest a significant return to infrastructure investment, with shadow values for public capital found to be positive and different from zero.

Author: Morrison, Catherine J., Schwartz, Amy Ellen
Infrastructure (Economics), Capital productivity

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The institutional structure of production

Article Abstract:

The institutional structure of production is important to the operation of the economic system and the development of economic policy. The economic and legal systems are interrelated. Economists use the exchange of goods to illustrate perfect or near-perfect competition. These exchanges regulate traders' activities, and regulations are necessary for trades to occur.

Author: Coase, R.H.
Exchange, Industrial organization, Institutional economics

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Subjects list: Research, Production (Economics)
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