‘X-Efficacy’ vs X-Efficiency

I want to argue that, whatever some might think, Leibenstein was not so much a mad uncle in the Harvard faculty’s attic (e.g. Stigler 1976 cf. Holden 2005), but rather a brilliant evolutionary economist struggling to escape. My point is that the non-allocative concept of X-efficiency only makes consistent analytical sense in an evolutionary and complex systems theory-based evolutionary framework, and, moreover, implies the existence of a companion concept: X-efficacy.

Chapter prepared for Renaissance in Behavioral Economics, edited by Roger Frantz, Routledge 2007