Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Efficiency

  • Fatih DeyneliEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_41

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...

This is a preview of subscription content, log in to check access.

References

  1. Albers P (2003) Evaluating judicial systems “a balance between variety and generalisation”. CEPEJ 12, StrasbourgGoogle Scholar
  2. Arnold R (2011) Microeconomics, 11th edn., South-Western Cengage Learning, USAGoogle Scholar
  3. Besanko D, Braeutigam R (2011) Microeconomics, 4th edn., NJ: Wiley, USAGoogle Scholar
  4. Buscaglia E, Ulen T (1997) A quantitative assessment of the efficiency of the judicial sector in Latin America. Int Rev Law Econ 17:275–291CrossRefGoogle Scholar
  5. CEPEJ (2012) CEPEJ report evaluating European judicial systems – 2012 edition (2010). CEPEJ studies no 18, BelgiumGoogle Scholar
  6. Cooter RB, Ulen T (2011) Law and economics, 6th edn., Pearson, USA.Google Scholar
  7. Dakolias M (1999) Court performance around the world: a comparative perspective. World Bank, 83 WTP no 430, Washington, D.CGoogle Scholar
  8. Dimock S (2005) Law and economics. Classic readings and Canadian cases in the philosophy of law. Prentice Hall, TorontoGoogle Scholar
  9. 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
  10. Posner RA (1973) An economic approach to legal procedure and judicial administration. J Legal Stud 2(2):399–458CrossRefGoogle Scholar
  11. Posner RA (2006) A review of Steven Shavell’s foundations of economics analysis of law. J Econ Lit 44(2):405–414CrossRefGoogle Scholar
  12. Rosales-Lopez V (2008) Economics of court performance: an empirical analysis. Eur J Law Econ 25:231–251CrossRefGoogle Scholar
  13. Varian HR (2010) Intermediate microeconomics, 8th edn. W.W. Norton, New YorkGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Department of Public FinancePamukkale UniversityDenizliTurkey