• Corpus ID: 218465251

The Xistence of X-Efficiency

  title={The Xistence of X-Efficiency},
  author={George Joseph Stigler},
  journal={The American Economic Review},
  • G. Stigler
  • Published 1976
  • Economics
  • The American Economic Review
Harvey Leibenstein called attention in an influential article (1966) to a source of economic inefficiency which was given the awful name of X[in]efficiency. He cited studies in which misallocations of resources due to monopoly or tariffs had trifling social costs, whereas simple failure to attain the production frontier apparently led to social losses of a vastly greater magnitude. I propose to argue that this type of inefficiency can usefully be assimilated into the traditional theory of… 
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