Harvey Leibenstein (1922 – February 28, 1994) was a Ukrainian-born American economist. One of his most important contributions to economics was the concept of X-inefficiency and the critical minimum effort thesis in development economics.
Concerning his "critical minimum effort thesis", he says that the underdeveloped countries are trapped by the vicious circle of poverty and many other growth retarding factors which keep them in the state of backwardness. So these countries need to increase their per capita income to a certain level where they can maintain a self-sustained growth rate: they need a critical minimum effort, i.e., they need to invest at more than a minimum level to overcome all the obstacles of the underdeveloped countries.
In economics, X-efficiency is the effectiveness with which a given set of inputs are used to produce outputs. If a firm is producing the maximum output it can, given the resources it employs, such as men and machinery, and the best technology available, it is said to be technical-efficient. X-inefficiency occurs when technical-efficiency is not achieved.
The concept of X-efficiency is also used in the theory of bureaucracy.
Selected publications
1950, "Bandwagon, Snob and Veblen Effects in the Theory of Consumer Demand", Quarterly Journal of Economics, Vol.64 No.2 : Page 183-207
1954, A Theory of Economic-Demographic Development, Foreword by Frank Notestein, Princeton, New Jersey: Princeton University Press
1960, "Economic Backwardness and Economic Growth: Studies in the Theory of Economic Development",[1]
1979, “The General X-Efficiency Paradigm and the Role of the Entrepreneur”. in: Mario Rizzo (ed.), Time, Uncertainty, and Disequilibrium. Lexington: Heath 1979, 127-139
1982, “The Prisoners’s Dilemma in the Invisible Hand: An Analysis of Intrafirm Productivity.” American Economic Review, (Papers and Proceedings) 72, no. 2 (May): 92–7
1983, "Property Rights and X-Efficiency: Comment." American Economic Review, 83: 831–42.
1987, Inside the Firm, The Inefficiencies of Hierarchy, Cambridge: Harvard University Press
References
^Harvey Leibenstein (1960). Economic Backwardness and Economic Growth: Studies in the Theory of Economic Development. John Wiley & Sons.
^Harvey Leibenstein (1978). General X-efficiency Theory and Economic Development. Oxford University Press. ISBN978-0-19-502380-0.
harvey, leibenstein, 1922, february, 1994, ukrainian, born, american, economist, most, important, contributions, economics, concept, inefficiency, critical, minimum, effort, thesis, development, economics, concerning, critical, minimum, effort, thesis, says, t. Harvey Leibenstein 1922 February 28 1994 was a Ukrainian born American economist One of his most important contributions to economics was the concept of X inefficiency and the critical minimum effort thesis in development economics Concerning his critical minimum effort thesis he says that the underdeveloped countries are trapped by the vicious circle of poverty and many other growth retarding factors which keep them in the state of backwardness So these countries need to increase their per capita income to a certain level where they can maintain a self sustained growth rate they need a critical minimum effort i e they need to invest at more than a minimum level to overcome all the obstacles of the underdeveloped countries In economics X efficiency is the effectiveness with which a given set of inputs are used to produce outputs If a firm is producing the maximum output it can given the resources it employs such as men and machinery and the best technology available it is said to be technical efficient X inefficiency occurs when technical efficiency is not achieved The concept of X efficiency is also used in the theory of bureaucracy Selected publications Edit1950 Bandwagon Snob and Veblen Effects in the Theory of Consumer Demand Quarterly Journal of Economics Vol 64 No 2 Page 183 207 1954 A Theory of Economic Demographic Development Foreword by Frank Notestein Princeton New Jersey Princeton University Press 1960 Economic Backwardness and Economic Growth Studies in the Theory of Economic Development 1 1966 Allocative Efficiency vs X Efficiency The American Economic Review Vol LVI June 1966 1968 Entrepreneurship and Development The American Economic Review 58 2 72 83 1969 Organizational or Frictional Equilibria The Quarterly Journal of Economics Vol LXXXIII No 4 November 1969 1974 Socio economic Fertility Theories and Their Relevance to Population Policy International Labour Review May June 1974 1974 An Interpretation of the Economic Theory of Fertility Journal of Economic Literature Vol XII No 2 June 1974 1975 The Economic Theory of Fertility Decline The Quarterly Journal of Economics Vol LXXXIX No 1 February 1975 1976 Beyond Economic Man Cambridge Harvard University Press 1978 General X Efficiency Theory and Economic Development New York Oxford University Press 2 1978 X inefficiency Exists A Reply to an Exorcist American Economic Review 68 1978 208 1979 A Branch of Economics Is Missing Micro Micro Theory Journal of Economic Literature 17 477 502 JSTOR 2723301 1979 The General X Efficiency Paradigm and the Role of the Entrepreneur in Mario Rizzo ed Time Uncertainty and Disequilibrium Lexington Heath 1979 127 139 1982 The Prisoners s Dilemma in the Invisible Hand An Analysis of Intrafirm Productivity American Economic Review Papers and Proceedings 72 no 2 May 92 7 1983 Property Rights and X Efficiency Comment American Economic Review 83 831 42 1987 Inside the Firm The Inefficiencies of Hierarchy Cambridge Harvard University PressReferences Edit Harvey Leibenstein 1960 Economic Backwardness and Economic Growth Studies in the Theory of Economic Development John Wiley amp Sons Harvey Leibenstein 1978 General X efficiency Theory and Economic Development Oxford University Press ISBN 978 0 19 502380 0 External links Edithttps www nytimes com 1994 03 03 obituaries harvey leibenstein harvard professor 71 html This biography of an American economist is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Harvey Leibenstein amp oldid 1085728654, wikipedia, wiki, book, books, library,
