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The extent to which an organisation, policy, program or initiative is produces outputs in relation to resources used.

Treasury Board Secretariat. Results-Based Management Lexicon. 


Manning, Kraan and Malinska differentiate between "operational" efficiency and "allocative" efficiency. The following notes are drawn from their paper, "How and Why Should Government Activity Be Measured":

In economics, the term "efficiency" is used in two different ways: operational or technical efficiency and allocative efficiency. Operational efficiency is costs per unit of output, given the existing input combination. Allocative (input) efficiency is costs per unit of output, given the input prices. The efficient input combination may change according to a change in input prices. Cost efficiency comprises both operational and allocative (input) efficiency.

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