QE Principle

SSRN Electronic Journal 02/2012; DOI: 10.2139/ssrn.2000186


The QE Principle is an economic concept and model for simultaneously measuring the degree of both quality and efficiency as one entity (QE). It was originally developed for health care industry services, but QE is also applicable to the production of both products and services for consumers in all industries. It includes a unique formula that measures a numerical degree (percentage) of the uniquely combined single value of quality and efficiency with a model that combines measures of available revenues to produce the products and services, the actual expenditures for that production and the projected costs required to satisfy the needs (quality and cost) of the consumer.

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