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ИД «Финансы и кредит»






Economic Analysis: Theory and Practice

On the concept of efficiency

Vol. 16, Iss. 5, MAY 2017

Received: 9 March 2017

Received in revised form: 3 April 2017

Accepted: 24 April 2017

Available online: 29 May 2017


JEL Classification: A10

Pages: 935-947


Shtele E.A. Omsk State Transport University, Omsk, Russian Federation

Vecherkovskaya O.B. Saint-Petersburg State Economic University, St. Petersburg, Russian Federation

Subject The article demonstrates, in natural sequence, the formation of the categories of efficiency and effectiveness from the period of classical economic theory emergence down to our days, and describes the phased development of the category under consideration in accordance with the movement of economic thought.
Objectives Significant differences in the analyzed concepts’ interpretation, existing in domestic and foreign literature, necessitate their refining.
Methods The study employs retrospective analysis of the definition of ‘efficiency’ and principles of process and institutional approaches to generate an original definition.
Results We analyzed the approaches of domestic scientists to the definition of economic categories of efficiency and effectiveness, systematized the criteria taken as a basis for interpretation of efficiency and effectiveness in the works by domestic and foreign scientists.
Conclusions and Relevance We present our own interpretation of the studied concept. Efficiency is defined as a balance of resources spent to realize the interests of economic entities and real outcome of relations of actors in a given institutional environment. The research has theoretical significance to the extent of clarification and systematization of existing terminology.

Keywords: efficiency, effectiveness, effect, result, economic process


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