The terms efficiency and effectiveness are commonly used, yet often are applied in slightly and occasionally widely different ways. This staff research note sets out how the Productivity Commission defines these terms along with related concepts such as cost effectiveness and productivity.

Staff research notes have been prepared and are authored by individual staff to advance understanding of issues on the Commission's supporting research program. The views expressed in these notes are those of the staff involved and do not necessarily reflect the views of the Productivity Commission.

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