The criteria of economic efficiency: comparative review and heuristic proposal

Abstract

This article examines and compares main theoretical criteria of economic efficiency used in welfare economics and the formulation of public policies. In a world with limited resources and increasing social needs, efficiency becomes central to rational decision-making. The research applies a conceptual and comparative methodology, based on authoritative academic sources. The concept of efficiency, which serves as an analytical benchmark for optimizing the input-output ratio under the constraint of limited resources, has evolved from ancient conceptions in China, Egypt, Israel, and Greece to mercantilist views, then to classical economics and marginalist formalization, being subsequently evaluated through modern criteria such as Pareto, Kaldor-Hicks with Scitovsky’s correction, the Rawlsian maximin principle, adaptive efficiency (van Staveren), and evolutionary efficiency (Muñoz-Encinar), which this article analyzes comparatively with a view to provide a foundation for public decisions. Classical criteria – Pareto, Kaldor-Hicks, Scitovsky, are analyzed alongside modern approaches such as van Staveren’s adaptive efficiency and the maximin principle formulated by Rawls. No single criterion is sufficient on its own: classical ones provide analytical clarity, while modern ones integrate equity, sustainability and institutional dynamics. It is proposed a heuristic criterion inspired by the logic of heuristic algorithms, which evaluates performance through iterative processes of learning and adaptation in complex and uncertain contexts, it is supported a pluralist approach that combines multiple criteria depending on policy objectives, context, and resource constraints, thereby maximizing the social and economic impact of public interventions.