Journal of Economic Literature
Book Reviews
2026-09-01
Michael A. Williams of Competition Economics reviews “Truth or Economics: On the Definition, Prediction, and Relevance of Economic Efficiency” by Richard S. Markovits,. The EconLit Abstract of the reviewed work begins “Considers the way in which scholars and public decisionmakers define, predict, and assess the moral and legal relevance of economic efficiency. Discusses the correct definition of the impact of a choice on economic (allocative) efficiency; a critique of the definitions of and tests for economic efficiency that economists and law and economics scholars use; the distortion analysis approach to economic efficiency assessment; some second-best-theory critiques of canonical allocative efficiency analyses and of the standard justifications for ignoring second best; the prescriptive moral and legal relevance of allocative efficiency conclusions; and a critique of various relevance arguments made by economists and law and economics scholars. Markovits is John B. Connally Chair in Law at the University of Texas Law School. Glossary; index.”