Term:
Efficiency (of production processes)
Definition:
Efficiency refers to the degree to which a production process reflects ‘best practice’, either in an engineering sense (‘technical efficiency’) or in an economic sense (‘allocative efficiency’).
Domain:
Economics & National Accounts
Source:
OECD Productivity Manual: A Guide to the Measurement of Industry-Level and Aggregate Productivity Growth, OECD, Paris, March 2001, Annex 1 – Glossary
