BROWSE

X-Efficiency

What is 'X-Efficiency'

X-efficiency is the degree of efficiency maintained by individuals and firms under conditions of imperfect competition. According to the neoclassical theory of economics, under perfect competition individuals and firms must maximize efficiency in order to succeed and make a profit; those who do not will fail and be forced to exit the market. However, x-efficiency theory asserts that under conditions of less-than-perfect competition, inefficiency may persist.

Explaining 'X-Efficiency'

The concept of x-efficiency was proposed by economist Harvey Leibenstein in a 1966 paper. The theory of x-efficiency is controversial because it conflicts with the assumption of utility-maximizing behavior, a well-accepted axiom in economic theory. Instead, some economists argue that the concept of x-efficiency is merely the observance of workers' utility-maximizing tradeoff between effort and leisure. Empirical evidence for the theory of x-efficiency is mixed.


Further Reading


X-efficiency in Australian banking: An empirical investigation
www.sciencedirect.com [PDF]
… cross-country comparisons are difficult to interpret because the regulatory and economic environments faced by financial institutions are likely … This study used DEA to measure x-efficiency in Australian banks in the year of 1996 … Review of Economics and Statistics, 72 (1990), pp …

Cost X-efficiency in China's banking sectorCost X-efficiency in China's banking sector
www.sciencedirect.com [PDF]
… cross-country comparisons are difficult to interpret because the regulatory and economic environments faced by financial institutions are likely … This study used DEA to measure x-efficiency in Australian banks in the year of 1996 … Review of Economics and Statistics, 72 (1990), pp …

The X-efficiency in Islamic banksThe X-efficiency in Islamic banks
papers.ssrn.com [PDF]
… cross-country comparisons are difficult to interpret because the regulatory and economic environments faced by financial institutions are likely … This study used DEA to measure x-efficiency in Australian banks in the year of 1996 … Review of Economics and Statistics, 72 (1990), pp …

Is there a liability of foreignness in global banking? An empirical test of banks' X‐efficiencyIs there a liability of foreignness in global banking? An empirical test of banks' X‐efficiency
onlinelibrary.wiley.com [PDF]
… cross-country comparisons are difficult to interpret because the regulatory and economic environments faced by financial institutions are likely … This study used DEA to measure x-efficiency in Australian banks in the year of 1996 … Review of Economics and Statistics, 72 (1990), pp …

X‐efficiency and productivity change in Australian bankingX‐efficiency and productivity change in Australian banking
onlinelibrary.wiley.com [PDF]
… cross-country comparisons are difficult to interpret because the regulatory and economic environments faced by financial institutions are likely … This study used DEA to measure x-efficiency in Australian banks in the year of 1996 … Review of Economics and Statistics, 72 (1990), pp …

Bank mergers, X‐efficiency, and the market for corporate controlBank mergers, X‐efficiency, and the market for corporate control
www.emerald.com [PDF]
… cross-country comparisons are difficult to interpret because the regulatory and economic environments faced by financial institutions are likely … This study used DEA to measure x-efficiency in Australian banks in the year of 1996 … Review of Economics and Statistics, 72 (1990), pp …

The Empirical Analysis on the X-Efficiency of Chinese Commercial Banks <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ200703009.htm' />The Empirical Analysis on the X-Efficiency of Chinese Commercial Banks [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ200703009.htm'>PDF]
… cross-country comparisons are difficult to interpret because the regulatory and economic environments faced by financial institutions are likely … This study used DEA to measure x-efficiency in Australian banks in the year of 1996 … Review of Economics and Statistics, 72 (1990), pp …

Estimates of X-Efficiency for the US Life Insurance IndustryEstimates of X-Efficiency for the US Life Insurance Industry
books.google.com [PDF]
… cross-country comparisons are difficult to interpret because the regulatory and economic environments faced by financial institutions are likely … This study used DEA to measure x-efficiency in Australian banks in the year of 1996 … Review of Economics and Statistics, 72 (1990), pp …


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