chapter
Studies on enterprise financial efficiency based on factor analysis method
ByX. Liu & H. Lei
Pages 6

Pareto (1906) in the course of political economics, first put forward the definition of efficiency, said “resource optimal configuration is that everyone at least as good as their initial conditions, and at least one person’s situation is better than the initial”. Richard (1983) pointed out that the efficiency means that the minimum resources input to produce a certain amount of products. The new Palgrave economics dictionary said that, efficiency refers to the efficiency of resource allocation. Ci Hai of China, the efficiency is that “labor of the ratio of pay to work”, namely the ratio of input and output, and shows that the amount of labor is a measure of the work achievement obtained. Samuelson thought in “economics”, economic efficiency, there is no waste, namely don’t reduce the production of a commodity, also don’t add another commodity production, the operation of the economy in the production possibilities frontier. Fan Gang in the book “the public sector of the macroeconomic theory outline”, said that the economic efficiency provided the satisfaction with the goods, under the condition of existing resources.