They find improvement in the aggregate allocative efficiency
during the first decade and a strong reversal after 1992.
The second uses a unique dataset covering the universe of Italian firms to estimate the role of allocative efficiency
in productivity growth.
is a farming capacity to use the inputs with an optimal proportion at the constant prices of factors of production and production technologies.
Along with technological progress, changes in technical efficiency, scale effect and changes in allocative efficiency
can also contribute to productivity growth.
The minimum allocative efficiency
score of the sample statice farmers was 0.
entails the ability of government to prioritize public spending in accordance to economic and social needs.
The starting point of a large body of recent research on economic growth is the notion that differences in aggregate total factor productivity (TFP) may not be driven solely by technology but rather in part by allocative efficiency
conditions of allocative efficiency
, in which the price of an article of
Estimation of Allocative Efficiency
: Allocative efficiency
was estimated by dividing economic efficiency by technical efficiency:
The major limitations trace back to the analytical separation of law from its formative process, which has resulted in an almost exclusive focus on the allocative efficiency
of legal entitlements and little or no attention paid to the causal relationship between the efficiency of legal rules and the efficiency of the lawmaking process.
Gunster, Carree and Dijk (2011) study the impact of cartels on economic efficiency conceptualized as allocative efficiency
(profitability), productive or x-efficiency (labor productivity) and dynamic efficiency (innovation).
Firm efficiency consists of two components: technical efficiency, which simply reflects the ability of a firm to obtain maximal output from a given set of inputs, and allocative efficiency
, which basically reflects the ability of a firm to use the inputs in optimal proportions, given their respective prices and the production technology, (Farrell, 1957).