The thesis aims to understand how the meaning of efficiency is determined in the insolvency context. This is important as there are a multiple number of efficiency criteria in the economics literature that can more often than not obscure its meaning. Normative considerations guide the selection of the most appropriate criterion in a certain context. The thesis pursues the context in a framework comprised of the conjunction of insolvency jurisprudence and economic method.It advances two arguments. First, the context for understanding what efficiency means is provided by the perspectives of insolvency law. This is the jurisprudence component of the framework. The thesis argues that each perspective demonstrates an affinity for an efficiency criterion (or criteria) in the pursuit of the objectives of insolvency law under it.Just as the meaning of efficiency varies with jurisprudential context, its properties vary according to the economic methodology it is associated with. Schools of economic thought, like insolvency jurisprudence, are not homogeneous, raising the possibility that one may hold to a methodological position that can conflict with the methodology underlying an efficiency criterion. An example of this conflict can be seen between the methodologies of mainstream neoclassical and Austrian economics, the two schools of economics analysed in the thesis. Against this backdrop, the second argument is that whether the efficiency criterion (that is affined with an insolvency perspective) is endorsed for use depends upon its compatibility with one's methodological views. This is the economic component of the framework.Hence, the thesis answers the question of how 'efficiency' is determined by reference to a framework that requires the concordance between an efficiency criterion's associated insolvency perspective and one's economic methodological position. At times, the legal and economic components may discord with each other. This is problematic to the extent that efficiency is not properly defined in a particular context. It is in the difficulty of resolving this jurisprudence-method conflict that the thesis argues for the concordance between both components in clarifying efficiency.This jurisprudence-method framework for determining the meaning of efficiency is a hitherto neglected course of developing the theoretical insolvency literature. By directly considering how economic method can endorse or oppose particular efficiency criteria, the thesis gives pause for thought to the way that policy proposals are affected by the decision-maker's stance on economic method.
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