54 Sentences With "allocative" | Random Sentence Generator

Crawford details two types of harm: allocative harm and representational harm.

A hypothetical lender concerned only with allocative efficiency (the better pricing of risk) is nevertheless sure to have unwished-for societal effects.

In her paper, Sweeney argued that this representational harm of associating blackness with criminality can have an allocative consequence: employers, when searching applicants' names, may discriminate against black employees because search results are tied to criminals.

Within the NHS system, there is an allocative inefficiency of staffing resources which is illuminated by the crisis in A&E: if a patient is able to wait for seven or more hours in an emergency department, then perhaps that said patient may not necessarily require treatment in an acute setting, much less in a fully fledged hospital.

The production function is central to the marginalist focus of neoclassical economics, its definition of efficiency as allocative efficiency, its analysis of how market prices can govern the achievement of allocative efficiency in a decentralized economy, and an analysis of the distribution of income, which attributes factor income to the marginal product of factor input.

The benchmark (or allocative baseline) for free allocation for firms considered emissions- intensive and trade-exposed includes compensation for electricity price increases.

The franchise tax has the same characteristics as a static analysed Lump-sum tax. Therefore, the tax doesn’t change the allocative decisions of the firms.

If collusion is likely to occur among bidders, the VCG outperforms the generalized second-price auction for both revenues produced for the seller and allocative efficiency.

In the single-price model, at the point of allocative efficiency price is equal to marginal cost. At this point the social surplus is maximized with no deadweight loss (the latter being the value society puts on that level of output produced minus the value of resources used to achieve that level). Allocative efficiency is the main tool of welfare analysis to measure the impact of markets and public policy upon society and subgroups being made better or worse off. It is possible to have Pareto efficiency without allocative efficiency: in such a situation, it is impossible to reallocate resources in such a way that someone gains and no one loses (hence we have Pareto efficiency), yet it would be possible to reallocate in such a way that gainers gain more than losers lose (hence with such a reallocation, we do not have allocative efficiency).

Allocative efficiency is a state of the economy in which production represents consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing. In contract theory, allocative efficiency is achieved in a contract in which the skill demanded by the offering party and the skill of the agreeing party are the same. Although there are different standards of evaluation for the concept of allocative efficiency, the basic principle asserts that in any economic system, choices in resource allocation produce both "winners" and "losers" relative to the choice being evaluated. The principles of rational choice, individual maximization, utilitarianism and market theory further suppose that the outcomes for winners and losers can be identified, compared and measured.

Under these basic premises, the goal of attaining allocative efficiency can be defined according to some principle where some allocations are subjectively better than others. For example, an economist might say that a change in policy is an allocative improvement as long as those who benefit from the change (winners) gain more than the losers lose (see Kaldor–Hicks efficiency). An allocatively efficient economy produces an "optimal mix" of commodities.Kim, A., Decentralization and the Provision of Public Services: Framework and Implementation (Washington, D.C.: The World Bank, 2008), p. 9.

Thus, advocates of this theory claim that consumers would be unable to buy the necessary goods which they desire in a time of need. According to the theory of neoclassical economics, anti-price gouging laws prevent allocative efficiency. Allocative efficiency refers to when prices function properly, markets tend to allocate resources to their most valued uses. In turn those who value the good the most (and not just the wealthiest) will be willing to pay a higher price than those who do not value the good as much.

Hyperinflation can lead to the abandonment of the use of the country's currency (for example as in North Korea) leading to the adoption of an external currency (dollarization). ;Allocative efficiency: A change in the supply or demand for a good will normally cause its relative price to change, signaling the buyers and sellers that they should re-allocate resources in response to the new market conditions. But when prices are constantly changing due to inflation, price changes due to genuine relative price signals are difficult to distinguish from price changes due to general inflation, so agents are slow to respond to them. The result is a loss of allocative efficiency.

This model assumes that new firms can freely enter markets and compete with existing firms, or to use legal language, there are no barriers to entry. By this term economists mean something very specific, that competitive free markets deliver allocative, productive and dynamic efficiency. Allocative efficiency is also known as Pareto efficiency after the Italian economist Vilfredo Pareto and means that resources in an economy over the long run will go precisely to those who are willing and able to pay for them. Because rational producers will keep producing and selling, and buyers will keep buying up to the last marginal unit of possible output – or alternatively rational producers will be reduce their output to the margin at which buyers will buy the same amount as produced – there is no waste, the greatest number wants of the greatest number of people become satisfied and utility is perfected because resources can no longer be reallocated to make anyone better off without making someone else worse off; society has achieved allocative efficiency.

The overall effect of a well designed Private Electronic Market is what is described as allocative efficiency or in simple terms: a win-win for the seller (who maximizes revenue) and buyers (acquiring exactly what is of highest value to them). PEMs are based on game theory and combinatorial auction theory.

Beardshaw, J., Economics: A Student's Guide (Upper Saddle River, NJ: FT Press, 1984), p. 397. Also, for an extensive discussion of various types of allocative efficiency in production context and their estimations see Sickles and Zelenyuk (2019, Chapter 3, etc).Sickles, R., & Zelenyuk, V. (2019). Measurement of Productivity and Efficiency: Theory and Practice.

The 1980s saw the rise of neoclassical liberalism, the Washington Consensus and Structural Adjustment Programs. The dominant philosophy of this period saw underdevelopment as a symptom of allocative inefficiency, placed emphasis on the power of free markets to effect lasting development change and encouraged the minimization of the state's role in the economy.

Institute of Medicine. (2014). Crossing the Quality Chasm: The IOM Health Care Quality Initiative. Washington: National Academy Press. Retrieved February 13, 2014 from In economic terms, Alan M. Garber and Jonathan Skinner have explored the principles of productive and allocative inefficiency. Productive efficiency refers to the impact of inputs like “physicians, nurses, hospital beds, and capital” on American health care and the authors ask if the impact is greater in other countries (more efficient). Allocative efficiency refers to the benefits from the “marginal dollar spent on health care” and asks the question do the benefits realized “exceed the opportunity cost of other goods” not purchased like raising salaries, a new car, or better education. The authors found that “nearly all countries fall short of ideal in productive efficiency” and the United States system lags behind (is less efficient) other countries most of the time. They found that the U.S. has a high degree of allocative inefficiency, when compared with other high-income countries. The causes are “high prices for inputs, poorly restrained incentives for overutilization, and a tendency to adopt expensive medical innovations rapidly, even when evidence of effectiveness is weak or absent”.

Often inflation makes it difficult for economic agents to immediately distinguish increases in the price of a good which are due to relative price changes from changes in the price which are due to inflation of prices in general. This situation can lead to allocative inefficiency, and is one of the negative effects of inflation.

Normative economics seeks to identify what economies ought to be like. Welfare economics is a normative branch of economics that uses microeconomic techniques to simultaneously determine the allocative efficiency within an economy and the income distribution associated with it. It attempts to measure social welfare by examining the economic activities of the individuals that comprise society.

2013, McGraw- Hill. When drawing diagrams for businesses, allocative efficiency is satisfied if output is produced at the point where marginal cost is equal to average revenue. This is the case for the long-run equilibrium of perfect competition. Productive efficiency occurs when units of goods are being supplied at the lowest possible average total cost.

Graph of total, average, and marginal product In economics, a production function gives the technological relation between quantities of physical inputs and quantities of output of goods. The production function is one of the key concepts of mainstream neoclassical theories, used to define marginal product and to distinguish allocative efficiency, a key focus of economics. One important purpose of the production function is to address allocative efficiency in the use of factor inputs in production and the resulting distribution of income to those factors, while abstracting away from the technological problems of achieving technical efficiency, as an engineer or professional manager might understand it. For modelling the case of many outputs and many inputs, researchers often use the so-called Shephard's distance functions or, alternatively, directional distance functions, which are generalizations of the simple production function in economics.

Alcoa (2d Cir. 1945), for example, which inveighed that antitrust serve "the helplessness of individual before" "great aggregations of capital" by restricting industry to "small units"; see also United States v. Columbia Steel Co., 334 U.S. 495, 535-36 (1948) (Douglas, J., dissenting). the court tacked back to an understanding of antitrust based on economics and allocative efficiency, primarily under the influence of Robert Bork's book The Antitrust Paradox.

Tax policy is the choice by a government as to what taxes to levy, in what amounts, and on whom. It has both microeconomic and macroeconomic aspects. The macroeconomic aspects concern the overall quantity of taxes to collect, which can inversely affect the level of economic activity; this is one component of fiscal policy. The microeconomic aspects concern issues of fairness (whom to tax) and allocative efficiency (i.e.

Allocative efficiency is also known as Pareto efficiency after the Italian economist Vilfredo Pareto and means that resources in an economy over the long run will go precisely to those who are willing and able to pay for them. Because rational producers will keep producing and selling, and buyers will keep buying up to the last marginal unit of possible output - or alternatively rational producers will be reduce their output to the margin at which buyers will buy the same amount as produced - there is no waste, the greatest number wants of the greatest number of people become satisfied and utility is perfected because resources can no longer be reallocated to make anyone better off without making someone else worse off; society has achieved allocative efficiency. Productive efficiency simply means that society is making as much as it can. Free markets are meant to reward those who work hard, and therefore those who will put society's resources towards the frontier of its possible production.

The decision about the size of the tax influences the allocative decisions of the firms. If the government sets a tax which firms consider as too high, they will extract less minerals, and tax revenues for the government will be low. But mineral mines will live longer, since there is less exploitation. If on the other hand the imposed tax is too low, firms will extract more, and the mines will live shorter.

The Baqaee-Farhi approach enables a growth accounting in which (1) input factors like labor, capital, and energy can have Domar weights, just as industries or firms do, and (2) it is possible to separately estimate effects of overall technological improvement and of "allocative efficiency" which is higher in perfect competition and lower if price-to-cost markups are large.David Rezza Baqaee; Emmanuel Farhi. 2019. A short note on aggregating productivity. Online working paper.

As is crucial within the international private law context, it is the responsibility of the adjudicating court to determine the proper law and subsequently apply it. For example, in English law, two separate methods for characterising the cause of action exist. The first, are commercial and civil matters relating to contractual and non-contractual obligations. The Rome Regulations determine choice of law rules in said matters by providing an allocative framework for characterisation.

Multidimensional mechanism design for auctions with externalities. Journal of Economic Theory, 85(2), pp. 258–293. Moreover, Moldovanu and Jehiel have shown that multi-object auctions cannot be reduced to one-dimensional models without loss of generality because, in the presence of informational and allocative externalities, Bayes-Nash incentive compatible mechanisms exist only if private and social rates of information substitution are congruent, which in turn depends on whether signals are mono- or multi-dimensional.Jehiel, P., Moldovanu, B. (2001).

Three common types of market efficiency are allocative, operational and informational . However, other kinds of market efficiency are also recognised. James Tobin identified four efficiency types that could be present in a financial market: 1\. Information arbitrage efficiency Asset prices fully reflect all of the privately available information (the least demanding requirement for efficient market, since arbitrage includes realizable, risk free transactions) Arbitrage involves taking advantage of price similarities of financial instruments between 2 or more markets by trading to generate profits.

Because the state controls all firms, they could easily factor the cost of an externality into the price of a certain resource. Because decisions are made at higher rather than lower levels, it is argued that these decisions are less likely to have undesirable environmental consequences. Furthermore, because the state uses marginal cost pricing and determines entry, Langean socialism can avoid monopolies and the accompanying lack of allocative efficiency and x-efficiency. The model claims to solve another main criticism of capitalism.

Thus, an external cost may pose an ethical or political problem. Negative externalities are Pareto inefficient, and since Pareto efficiency underpins the justification for private property, they undermine the whole idea of a market economy. For these reasons, negative externalities are more problematic than positive externalities. Positive externalities, while Pareto efficient, are still market failures that undermine allocative efficiency because less of the good will be produced than would be optimal for society as a whole in a theoretical model with no government.

An example of the book's approach is the theories surrounding minimum wage. Classical micro-economic theory dictates that in a perfectly competitive market, raising the legal minimum wage will increase unemployment, as it prevents the hire of workers whose market value falls below the legal minimum. Society therefore loses from the imposition of a minimum wage due to the loss of allocative efficiency. While real markets may not be perfectly competitive, the model of perfect competition provides a good approximation to real market behaviour.

After Mill, there was a shift in economic theory, which emphasised a more precise and theoretical model of competition. A simple neo-classical model of free markets holds that production and distribution of goods and services in competitive free markets maximizes social welfare. This model assumes that new firms can freely enter markets and compete with existing firms, or to use legal language, there are no barriers to entry. By this term economists mean something very specific, that competitive free markets deliver allocative, productive and dynamic efficiency.

Economic effects of subsidies can be broadly grouped into # Allocative effects: these relate to the sectoral allocation of resources. Subsidies help draw more resources towards the subsidised sector # Redistributive effects: these generally depend upon the elasticities of demands of the relevant groups for the subsidised good as well as the elasticity of supply of the same good and the mode of administering the subsidy. # Fiscal effects: subsidies have obvious fiscal effects since a large part of subsidies emanate from the budget. They directly increase fiscal deficits.

There are several concepts of efficiency for a financial market. The most widely discussed is informational or price efficiency, which is a measure of how quickly and completely the price of a single asset reflects available information about the asset's value. Other concepts include functional/operational efficiency, which is inversely related to the costs that investors bear for making transactions, and allocative efficiency, which is a measure of how far a market channels funds from ultimate lenders to ultimate borrowers in such a way that the funds are used in the most productive manner.

In the health and social work fields, officials will favour 'deinstitutionalization' and 'care in the community'. The model was developed by Patrick Dunleavy from the London School of Economics in Democracy, Bureaucracy and Public Choice (London: Pearson Education, 1991, reissued 2001). It was propounded in response to William Niskanen's harsh criticism of Public Bureaucracies in his Budget Maximising Model. The Niskanen model predicts that in representative democracies, public bureaucracies will not only generate allocative inefficiency (by oversupplying public goods) but also x-inefficiency (by producing public goods inefficiently).

Experiments have yet to investigate the interaction of allocative mechanisms between the neuronal and synaptic levels. The two classes of processes are very likely to be interconnected considering the relationship between neurons and synapses in a neuronal network. For example, the synaptic tagging and capture involved in synaptic allocation requires the allocation of the neurons to which the synapses belong to. Moreover, increases in neuronal excitability in a given neuronal ensemble may affect some dendrites more than others, thus biasing memory storage to synapses in dendrites with higher excitability.

To tax the net present value of a firm in the mining industry, a resource rent tax is used. This tax will only be paid by firms with a positive Cash Flow. For firms with a negative cash flow, the government will choose an interest rate until the cumulative net cash flow turns positive again. Then a flat rate tax is applied, and the accumulated negative cash flows will be taxed. Under two assumptions regarding the interest rate and the cash flow, this tax has no impact on the firms’ allocative decision.

Not bidding more than the value of the resource to the trader, and not asking less than the cost of the resource to the trader are examples of such internal constraints. Under either interpretation, ZI traders use minimal intelligence in choosing their actions in markets. Simple double auctions tend to achieve high levels of allocative efficiency even when they are populated by zero-intelligence traders. This result has been used to show that the aggregate level properties of markets can be quite different from the behavior and properties of individuals who participate in them.

In work with Bertrand and David Thesmar, Schoar observes that after the deregulation of banking in France in 1985, banks became less willing to bail out firms with poor performance and firms being more dependent on banks became more likely to restructure, with rising rates of job and asset reallocation, higher allocative efficiency, and a less concentrated banking sector, an observation in line with Schumpeterian processes of creative destruction.Bertrand, M., Schoar, A., Thesmar, D. (2007). Banking deregulation and industry structure: Evidence from the French banking reforms of 1985. Journal of Finance, 62(2), pp. 597-628. .

The NEM represented a move away from the Joseph Stalin economic system of compulsory plan indicators in favor of a policy that states profits as the enterprises main goal. The new economic policy was a "comprehensive reform of the economic system", creating market relationships among companies, using prices as allocative functions and companies responding to prices to maximize profits, and using profits to budget new investments. These attempts failed, because of the resistance from the Comecom states and the Soviet Union. As a result, Fock finally withdrew in favor of György Lázár on 15 May 1975.

A market can be said to have allocative efficiency if the price of a product that the market is supplying is equal to the marginal value consumers place on it, and equals marginal cost. In other words, when every good or service is produced up to the point where one more unit provides a marginal benefit to consumers less than the marginal cost of producing it. Because productive resources are scarce, the resources must be allocated to various industries in just the right amounts, otherwise too much or too little output gets produced.Thomas. Government Regulation of Business.

By the fundamental theorems of welfare economics, any CE allocation is Pareto efficient, and any efficient allocation can be sustainable by a competitive equilibrium. Furthermore, by Varian's theorems, a CE allocation in which all agents have the same income is also envy-free. At the competitive equilibrium, the value society places on a good is equivalent to the value of the resources given up to produce it (marginal benefit equals marginal cost). This ensures allocative efficiency: the additional value society places on another unit of the good is equal to what society must give up in resources to produce it.

The conventional theory of monopoly power in economic life maintains that the monopolist will attempt to restrict supply in order to maintain price above its competitive level. The social cost of this monopoly power is a decrease in both allocative efficiency and the equity of income distribution. This conventional economic analysis of the role of monopoly power did not adequately address popular concern about the large corporation in the late 1960s. The growing concern focused on the role of the corporation in politics, the damage done to the natural environment by an unmitigated commitment to economic growth, and the perversion of advertising and other pecuniary aspects of culture.

In economics and game theory, an all-pay auction is an auction in which every bidder must pay regardless of whether they win the prize, which is awarded to the highest bidder as in a conventional auction. In an all-pay auction, the Nash equilibrium is such that each bidder plays a mixed strategy and their expected pay-off is zero.Jehiel P, Moldovanu B (2006) Allocative and informational externalities in auctions and related mechanisms. In: Blundell R, Newey WK, Persson T (eds) Advances in Economics and Econometrics: Volume 1: Theory and Applications, Ninth World Congress, vol 1, Cambridge University Press, chap 3 The seller's expected revenue is equal to the value of the prize.

The reform of health financing in the Republic of Moldova began in earnest in 2004 with the introduction of a mandatory health insurance (MHI) system. Since then, MHI has become a sustainable financing mechanism that has improved the technical and allocative efficiency of the system as well as overall transparency. This has helped to further consolidate the prioritization of primary care in the system, which has been based on a family medicine model since the 1990s. Hospital stock in the country has been reduced since independence as the country inherited a Semashko health system with excessive infrastructure, but there is still room for efficiency gains, particularly through the consolidation of specialist services in the capital city.

A socialist society, Marxian economists argue, also has a surplus product from an economic point of view, insofar as more is produced than is consumed. Nevertheless, the creation and distribution of the surplus product would begin to operate under different rules. In particular, how the new wealth is allocated would be decided much more according to popular-democratic and egalitarian principles, using a variety of property forms and allocative methods that have proved practically to correspond best to meeting the human needs of all. 20th century experience with economic management shows that there is a broad scala of possibilities here; if some options are chosen, and others not, this has more to do with who holds political power than anything else.

A production–possibility frontier (PPF), production possibility curve (PPC), or production possibility boundary (PPB), or Transformation curve/boundary/frontier is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources and technology/a graphical representation showing all the possible options of output for two products that can be produced using all factors of production, where the given resources are fully and efficiently utilized per unit time. A PPF illustrates several economic concepts, such as allocative efficiency, economies of scale, opportunity cost (or marginal rate of transformation), productive efficiency, and scarcity of resources (the fundamental economic problem that all societies face). Sickles, R., & Zelenyuk, V. (2019). Measurement of Productivity and Efficiency: Theory and Practice.

Theoretical discussion of negative taxation began with Vilfredo Pareto, who first made a formal distinction between allocative efficency (ie. the market's ability to give people what they want subject to their incomes) and distributive justice (ie. the question of whether these incomes are fair in the first place). He sought to show that market economies allocated resources optimally within the income distributions they give rise to, but accepted that there was nothing optimal about these distributions themselves. He concluded that if society wished to maximise wellbeing, it should let market forces govern production and exchange and then correct the result by ‘a second distribution... performed in conformity with the workings of free competition’.Manuale di Economia Politica con una Introduzione alla Scienza Sociale (1906) / Manuel d’Économie Politique (1909), §53 and §55 of Chap.

The Public Interest Theory of regulation explains in general terms, that regulation seeks the protection and benefit of the public at large; public interest can be further described as the best possible allocation of scarce resources for individual and collective goods. Regulation means the employment of legal instruments for the implementation of socio-economic policy objectives, for example the government can establish economic and social regulations in order to realize goals like allocative efficiency, stabilization, or fair and just income distribution In modern economies, the allocation of scarce resources is mainly coordinated by the market. In theory, this allocation of resources is optimal, but these conditions are frequently not complied in practice. The allocation of resources is not optimal and there is need for methods for improving the allocation.

A price signal is information conveyed to consumers and producers, via the price charged for a product or service, which provides a signal to increase or decrease quantity supplied or quantity demanded. The information carried by prices is an essential function in the fundamental coordination of an economic system, coordinating things such as what has to be produced, how to produce it and what resources to use in its production. In mainstream (neoclassical) economics, under perfect competition relative prices signal to producers and consumers what production or consumption decisions will contribute to allocative efficiency. According to Friedrich Hayek, in a system in which the knowledge of the relevant facts is dispersed among many people, prices can act to coordinate the separate actions of different people in the same way as subjective values help the individual to coordinate the parts of his plan.

Additionally, decentralization may not be as efficient for standardized, routine, network-based services, as opposed to those that need more complicated inputs. If there is a loss of economies of scale in procurement of labor or resources, the expense of decentralization can rise, even as central governments lose control over financial resources. Other challenges, and even dangers, include the possibility that corrupt local elites can capture regional or local power centers, while constituents lose representation; patronage politics will become rampant and civil servants feel compromised; further necessary decentralization can be stymied; incomplete information and hidden decision- making can occur up and down the hierarchies; centralized power centers can find reasons to frustrate decentralization and bring power back to themselves. It has been noted that while decentralization may increase "productive efficiency" it may undermine "allocative efficiency" by making redistribution of wealth more difficult.

In general, economic output is not a (mathematical) function of input, because any given set of inputs can be used to produce a range of outputs. To satisfy the mathematical definition of a function, a production function is customarily assumed to specify the maximum output obtainable from a given set of inputs. The production function, therefore, describes a boundary or frontier representing the limit of output obtainable from each feasible combination of input. (Alternatively, a production function can be defined as the specification of the minimum input requirements needed to produce designated quantities of output.) Assuming that maximum output is obtained from given inputs allows economists to abstract away from technological and managerial problems associated with realizing such a technical maximum, and to focus exclusively on the problem of allocative efficiency, associated with the economic choice of how much of a factor input to use, or the degree to which one factor may be substituted for another.