Definitions of Efficiency in Economics and in Law
The economic analysis of law relies upon microeconomic principles. Efficiency, a significant concept within microeconomic theory, is one of the key concepts in the economic analysis of law. There are different types of efficiency in economic literature. These types are defined as follows.
Productive Efficiency: The very first answer to the question “what is efficiency?” may be the ratio of the work done or output obtained by a certain amount of input. This is a state of maximum output using a certain source and technology during production. In other words, we can accomplish maximum output with the available source and technology we have. If the production with the sources and technology at hand is lower than maximum output, the state of inefficiency comes into picture (Arnold 2011).
Pareto Efficiency: Created by nineteenth century economist and sociologist Vilfredo Pareto (1848–1923), this term is a beneficial criterion in comparing...
- Albers P (2003) Evaluating judicial systems “a balance between variety and generalisation”. CEPEJ 12, StrasbourgGoogle Scholar
- Arnold R (2011) Microeconomics, 11th edn., South-Western Cengage Learning, USAGoogle Scholar
- Besanko D, Braeutigam R (2011) Microeconomics, 4th edn., NJ: Wiley, USAGoogle Scholar
- CEPEJ (2012) CEPEJ report evaluating European judicial systems – 2012 edition (2010). CEPEJ studies no 18, BelgiumGoogle Scholar
- Cooter RB, Ulen T (2011) Law and economics, 6th edn., Pearson, USA.Google Scholar
- Dakolias M (1999) Court performance around the world: a comparative perspective. World Bank, 83 WTP no 430, Washington, D.CGoogle Scholar
- Dimock S (2005) Law and economics. Classic readings and Canadian cases in the philosophy of law. Prentice Hall, TorontoGoogle Scholar
- Mathis K, Shannon D (trans) (2009) Efficiency instead of justice? Searching for the philosophical 87 foundations of the economic analysis of law. Springer Science+Business Media B.V, New YorkGoogle Scholar
- Varian HR (2010) Intermediate microeconomics, 8th edn. W.W. Norton, New YorkGoogle Scholar