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Cambridge Journal of Economics 26:161-178 (2002)
Copyright © 2002 Cambridge Political Economy Society

Article

The xistence of definitional economics—Stigler's and Leibenstein's war of the words

Craig Freedman

Department of Economics, Macquarie University, Sydney, NSW 2109, Australia; email efs.mq.edu.au

Abstract

The inability to agree on definitions ultimately can condemn economic analysis and debate to fruitless argumentation. The sharp interchange between Stigler and Leibenstein did little to clarify the issues surrounding the controversial theory of X-efficiency. Given their conflicting agendas, discussion between these two opponents consisted largely of talking at cross purposes. This paper examines the motivations of the two protagonists as well as considering the impact such tactics have on economic debate and discussion.

Key Words: X-efficiency • Allocative efficiency • Leibenstein • Stigler


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