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Special Report on

Productive efficiency and allocative efficiency

productive efficiency and allocative efficiency special research report Photo by
Most economists focus on the concept of “economic efficiency.” The basic concept of economic efficiency is to maximize the overall resources available to society.  However, often times economists ignore the importance of equity (i.e., the distribution of resources within a society). Tyler Cowen reminds us that seeking economic efficiency blindly is not ideal , especially in the case of natural disasters as the one that hit Haiti.  Below is an excerpt: I still believe that foreign aid does not raise economic growth rates, on average.  But aid can alleviate human misery, such as when a visiting doctor gives vaccines or ...
sometimes called a "production-possibility curve" or "product transformation curve", is a graph that shows the different rates of production of two goods and/or services that an economy can produce efficiently during a specified period of time with a limited quantity of productive resources , or factors of production . The PPF shows the maximum amount of one commodity that can be obtained for any specified production level of the other commodity (or composite of all other commodities), given the society's technology and the amount of factors of production available. Though they are normally concave, PPFs ...
Healthcare Economist · Is American Health Care Inefficient?
.  Productive efficiency means producing a good or service using fewest inputs.  A car company who produces a car that costs $20,000 to manufacture is less efficient than a company that can produce that same car (at the same quality) at a cost of $15,000.  Allocative efficiency is more subtle.  Are we producing the right amount of cars compared to trucks?  As gas prices rose, allocative efficiency compelled many car makers to shift to smaller passanger cars and hybrids compared to trucks. Alan Garber and Jonathan Skinner (2008) apply the dual concepts of productive and allocative efficiency.  They ask: is the American health ... market research, surveys and trends
The World of AP Econ: And a few more...
Fort Atkinson High School AP Microeconomics blog - a place where we can be together and talk about the higher learning of economics...well, actually a way to get discussion outside of class or answer questions that we may not have time for. Hey there - I'll check in on occasion over spring break if you have any questions, or just email me. If you've been confused, please spend some time with PC or M so that you can feel more caught up - and if anyone else can answer a peer's question, that's always helpful! :) Most of all - have a nice, relaxing break. You deserve it. You should be able to: ~recognize a ... market research, surveys and trends


Economic Growth
Economic Growth is one of the "5 Es" of economics or one of the five ways for a society to reduce scarcity. We defined Economic Growth as an increase in the ABILITY to produce goods and services and we noted that this not the way the term is normally defined. This type of Economic Growth is caused by: a) more resources b) better resources c) better technology If we only had more resources we could produce more goods and services and satisfy more of our wants. This will reduce scarcity and give us more satisfaction (more good and services). All societies therefore try to achieve economic growth. ... industry trends, business articles and survey research
Healthcare Economist · EMR
Currently, only 1.5% of U.S. hospitals have electronic records systems covering all their clinical units; an additional 7.6% have systems in at least one such hospital unit ( Jha et al. 2009 ).  This low EMR usage rate is astounding, especially since the RAND Corporation found that using EMR could save up to $77 billion annually.  The Wilson Quarterly notes that the Obama administration has promised to invest $19 billion in order to institute electronic medical records in the U.S.  Problem solved? Not so fast.  In a world where technology changes at warp speed will government-certified EMR systems soon become obsolete.  Will ... industry trends, business articles and survey research
Pathways to Development: What We Know and Don't Know
Development is about welfare enhancing transformation through economic, social, political, and technological progress. Transformation is predicated on per capita income growth but development is also about progress in reduction of poverty and inequality, individual capabilities, access to social services, and quality of life. Both growth and development are also predicated on distributive politics of how a society is able to deal with vested interests and social conflicts. During past sixty years, growth spurts have occurred in most countries but generally outcomes have fallen short of expectations. Developed economies have ... market trends, news research and surveys resources
We need to stop digging and start making things
US Secretary of Commerce Gary Locke makes it clear that the US and the Europeans are urgently looking to their manufacturing base for renewed economic growth and employment. Suddenly factories are hot again, especially as Chinese manufacturing starts to get more expensive and the financial services sector's share of gross domestic product shrinks. The other alarming phenomenon is the relaxed view taken by the Foreign Investment Review Board on the sale of Australian companies, mainly in mining, to China. Clearly, the government wants this process to continue. At some point, not only will all our mineral wealth be gone, but ... market trends, news research and surveys resources


Evaluating the Productive Efficiency and Performance of U.S. ...
sense, economic efficiency requires both productive efficiency and allocative efficiency. As discussed in Bauer et al. (1998), it is quite plausible that ... technology research, surveys study and trend statistics
Health Care Efficiency Measures, Appendix A
In the first half of the 20th century, microeconomic theory approached the efficiency concept from a Pareto perspective. The Pareto criterion is satisfied if no person can be made better off without making someone else worse off. The classic first welfare theorem holds that Pareto efficiency obtains if and only if: Markets exist for all possible goods. Markets are perfectly competitive. Transaction costs are negligible. There are no externalities. The implicit assumption was that firms always make optimal decisions on the use of inputs, and that any inefficiencies in an economy have their origin in the way resources are ... technology research, surveys study and trend statistics
Farrell's (1957) seminal contribution has introduced the concept of productive efficiency as a product of technical efficiency and allocative efficiency. ...
WikiAnswers - Explain why perfect competition may result in ...
Because in a perfectly competitive market, resources are used perfectly efficiently (excuse the grammar). A purely competitive market has very many peculiar features. One of them is that every firm is a price taker. This means they cannot set the price, so they must be as efficient as the most efficient competitor or they will be out-priced. This results in inefficient firms going out of business and only the most efficient staying alive. First answer by Sefner . Last edit by Sefner . Contributor trust : 95 [ recommend contributor ]. Question popularity : 1 [ recommend question ]. Can you ...
Which of the following statements is true about productive and ...