The General Theory of Economic Efficiency, Vol. 1

The General Theory of Economic Efficiency, Volume1, authored by Stephan Hsiao Loh and published in 1999 in the U.S.A., presents a major advancement in economic theory within the last one hundred years. It is the first volume of a planned three-volume set. It is one of the most important economic theories developed in centuries.

It establishes a unified theory of value by combining the rational aspect of classic labor theory of value and the rational aspect of marginal theory of value. Based on this unified theory, Stephan Loh clarifies all the paradoxes produced in the past 150 years that challenge the classic labor theory of value.

The book also presents a number of analyses of irrational aspect of both classic theory of value and marginal theory of value. Using the unified theory of value as the foundation for further scientific inquiry, the author explores the complex relationship between economic efficiency and economic parameters such as interest rate, inflation rate, productivity growth rate, etc. For the first time in the history of economic thinking, a theory of economic efficiency is developed, linking the efficiency of an economy to its parameters. To demonstrate if this theory is supported or contradicted by real-world reality, the author presents an application example by using the U.S. economic data from 1960 to 1997. This example suggests that the U.S. economic productivity growth rate could have been 216% higher during the 1990s if the interest rate for the economy is set to the optimal interest rate level. This suggests that the theory of economic efficiency has a significant application value. What is more important to all economists is that this economic theory is universally applicable to all market economic systems regardless of ideology, culture, geographical location, time, economic development level, and political and moral value systems. Thus it has significant value to economic development and growth. It is important to all economists and policy makers in this regard.