Harvey Leibenstein made critical contributions to the theory of the firm and our appreciation of the importance of human agency to economic performance through his development of efficiency wage and X-efficiency theories. The former set the basis for contemporary efficiency wage theory such as developed by Akerlof (1980, 1982, 1984), Shapiro and Stiglitz (1984), and Stiglitz (1976, 1987). Although X-efficiency theory has not received the same press as efficiency wage theory, the latter is a sub-set of the former and has become central to a multitude of empirical works attempting to measure the extent to which efficiency deviates from the neoclassical ideal where it is assumed that effort input is maximized by economic agents (Frantz, 1997).
|Title of host publication||Renaissance in Behavioral Economics|
|Subtitle of host publication||Essays in Honour of Harvey Leibenstein|
|Publisher||Routledge Taylor & Francis Group|
|Number of pages||41|
|ISBN (Print)||0203020871, 9780203020876|
|Publication status||Published - 6 Jun 2007|
Altman, M. (2007). Effort discretion economic agency and behavioral economics: Transforming economic theory and public policy. In Renaissance in Behavioral Economics: Essays in Honour of Harvey Leibenstein (pp. 105-145). Routledge Taylor & Francis Group. https://doi.org/10.4324/9780203020876