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| | Chapter 8 |
 | | deadweight loss: the fall in total surplus that results from a market distortion, such as a tax. | | | how tax revenue and deadweight loss vary with the size of a tax. | | | A tax on a good reduces the welfare of buyers and sellers of the good, and the reduction in consumer and producer surplus usually exceeds the revenue raised by the government. |
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http://www.seattlecentral.org/faculty/jhubert/manch08.html
(1363 words)
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| | The Individual Alternative Minimum Tax: No Alternative But Repeal |
| | The deadweight loss of the AMT, due to its deviation from its design, is evident when it is considered that in 1998, 25 percent of the taxpayers subject to AMT (mainly wealthy taxpayers) paid 81 percent of its liabilities. | | | This reduction of $2.3 billion is the amount people pay to their tax preparer, the loss of time, the cost to the government to enforce and collect tax payments, etc. Readers may have noticed that the government is listed as both the producer and the receiver of taxes. | | | While it is true that people are employed in the course of the deadweight loss (tax attorneys, accountants, IRS auditors, etc.), this deadweight loss is net of their benefit. |
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http://www.ntu.org/main/press_papers.php?PressID=577&org_name=NTU
(9849 words)
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| | EconPapers: Tax Avoidance and the Deadweight Loss of the Income Tax |
| | Deadweight losses are substantially greater than these conventional estimates because the traditional framework ignores the effect of higher income tax rates on tax avoidance through changes in the form of compensation (e.g., employer paid health insurance) and through changes in the patterns of consumption (e.g., owner occupied housing). | | | The deadweight loss due to the increased use of exclusions and deductions is easily calculated. | | | Repealing the 1993 increase in tax rates for high income taxpayers would reduce the deadweight loss of the tax system by $24 billion while actually increasing tax revenue. |
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http://netec.mcc.ac.uk/WoPEc/data/Papers/nbrnberwo5055.html
(478 words)
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| | Tax Reduction and Economic Welfare |
| | While some find very high deadweight losses with the personal income tax, the loss with corporate taxes may be lower. | | | The 40 cent welfare loss per tax dollar estimate is a reasonable midrange evaluation of a number of studies of the issues using different methodologies, data sets, and time periods. | | | Moreover, Feldstein found that an across-the-board income tax cut, as some are advocating, would in general reduce deadweight losses by nearly two dollars for each dollar of tax revenue lost. |
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http://www.house.gov/jec/fiscal/tax/reduce.htm
(3048 words)
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| | What is deadweight loss, really |
| | Imposing a tax on consumers will result in the same triangle and the same deadweight loss, but the new equilibrium point is at the bottom (not the top) of the triangle. | | | The difference between a rebate and a tax is that we are making transactions happen that shouldn't happen. | | | The meaning of this area is that it represents the consumer and supplier surplus that isn't realized because of the tax. |
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http://www.rhsmith.umd.edu/faculty/jbailey/ents630/dloss.html
(546 words)
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| | [No title] |
| | Deadweight Loss and Tax Revenue as Taxes Vary Determining the optimal size of a tax is no small problem because as a tax increases in size (ceteris paribus) the deadweight loss grows faster than the revenue collected from the tax: Small taxes generate little revenue and create a small deadweight loss. | | | Most taxes generate a deadweight loss in welfare that nobody benefits from. | | | Large taxes also generate little revenue but with a much larger deadweight loss. |
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http://titan.iwu.edu/~dmendez/principles/Chapter_08.doc
(494 words)
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| | NCPA - Study #215 - Measuring the Burden of High Taxes |
| | The marginal deadweight loss is the change in the difference between potential and actual GDP over time divided by the change in real taxes. | | | The marginal deadweight loss is found by regressing the difference between real potential and actual GDP on real taxes. | | | In the public finance literature, the "deadweight loss of taxation" arises from tax-induced distortions in allocative efficiency. |
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http://www.ncpa.org/studies/s215/s215d.html
(1071 words)
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| | Deinonychus antirrhopus: Taxes and Deadweight Loss |
| | Deadweight loss results because taxes increase the price for the consumers and decreases the price for the suppliers. | | | This is a social loss in the sense that it is the cost of moving money around and not doing anything productive. | | | Tax payers spend millions of hours each year to comply with the tax code, and even quite a few out of pocket dollars. |
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http://www.steveverdon.com/archives/000080.html
(436 words)
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| | [No title] |
| | Taxation In the Absence of Deadweight Losses In this section, we continue to assume that agent n is the government. | | | Deadweight Loss from Taxation In the Full and Partial institutions, Theorems 1, 3, and 4 continue to hold. | | | Denote the equilibrium tax rate with deadweight loss by cdead. |
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http://www.princeton.edu/~rosentha/inequality21-3-99.doc
(4012 words)
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| | CHAPTER 9 |
| | Deadweight loss is equal to the area C + B, which is equal to $12.6 billion. | | | Deadweight loss refers to the benefits lost to either consumers or producers when markets do not operate efficiently. | | | However, with a tariff, the government can collect revenue equal to the tariff times the quantity of imports and these revenues can be redistributed in the domestic economy to offset the domestic deadweight loss by, for example, reducing taxes. |
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http://www.coloradocollege.edu/DEPT/EC/Faculty/Smith/EC2070102/chap_09answers.htm
(6129 words)
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| | Costs of Protection |
| | In words, the deadweight loss is one half of the product of the tariff rate, the percentage reduction in imports due to the tariff, and the value of imports. | | | This amounts to a deadweight loss of $2.25 billion. | | | Another way of thinking about the costs of protectionism is by comparing the costs to the benefits on a cost per job saved basis (see pp. |
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http://www.appstate.edu/~whiteheadjc/ECO3410/Notes/Policy/costs_of_protection.htm
(310 words)
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| | [No title] |
| | The government could reduce the tax to $150 per unit, get more tax revenue ($15,000 when the tax is $150 versus $13,333 when the tax is $200), and reduce the deadweight loss (7,500 when the tax is $150 compared to 13,333 when the tax is $200). | | | Figure 2 illustrates the deadweight loss and tax revenue from a tax on the sale of a good. | | | Now consumer surplus is A, producer surplus is F, and government revenue is B+D. The deadweight loss of the tax is C+E, since that area is lost because of the decline in quantity from Q1 to Q2. |
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http://www.econ.umn.edu/~fyang/Summer03_1101/Ch8.doc
(3030 words)
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| | Econ 200 Chap 8 notes |
| | The difference between the decrease in total consumer and producer surplus and the tax revenue generated is referred to as the deadweight loss of a tax. | | | Deadweight Loss and Tax Revenue as Taxes Vary | | | When a tax is imposed on a good, the tax reduces consumer and producer surplus by an amount that is greater than the tax revenue generated. |
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http://www.usu.edu/econsm/200/200chap8.html
(189 words)
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| | Tax Question Answers part 5 (41-50) |
| | The deadweight loss will be directly proportional to the reduction in trade that the tax causes. |
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http://www.pc.maricopa.edu/LiberalArts/economics/ecn111/practice/taxans5.html
(873 words)
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| | Exercise 1 |
| | The ratio of the deadweight loss from a tax to the amount of revenue it raises is often used to measure the relative efficiency of the tax: it is the deadweight loss per dollar of revenue. | | | What is the ratio of deadweight loss to tax revenue for each of the two groups? | | | For each group, calculate the following items: quantity demanded before the tax increase; quantity demanded after the tax increase; additional tax revenue paid; deadweight loss; and the percentage change in quantity demanded. |
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http://wilcoxen.cp.maxwell.syr.edu/pages/1020.html
(431 words)
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| | Tax Reform New Book Review |
| | That loss to me and to the GDP in virtue of my lowered income is in addition to the taxes taken by the public sector, so it is called a deadweight loss. | | | This means that we can just line up all plausible taxes from best to worst according to how much deadweight loss they impose, and use the best taxes most fully, while abolishing all other taxes. | | | In this way, public sector revenue can be kept at its current level (hey, we all know government spending can and should be cut, but that's a topic for another book, okay?), and the deadweight loss to the economy can be cut way down. |
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http://www.progress.org/archive/lnations.htm
(460 words)
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| | In the Agora: "The Deadweight Loss of Christmas" |
| | One may not be a fan of Christmas and its propensity for materialism, but the concept of Christmas spending as a deadweight loss of any kind is, to paraphrase Henry Hazlett, to simply look at what can be seen and not at the impacts that can't be seen, which means it's short-sighted. | | | I would further add that there is a destruction of value in the time and resources expended to return or sell unwanted gifts, often for merchandise vouchers or prices even further below the sale price. | | | Yes, it certainly seems petty to worry over the value of something that someone is giving you because they love you, and even more crass to discount the sentimental value. |
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http://www.intheagora.com/archives/2005/11/the_deadweight.html
(2510 words)
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| | Economics 111 |
| | Calculation of deadweight loss assumes tax revenue is a gain but | | | Effect of the size of tax on deadweight loss and revenue | | | As tax increases, deadweight loss increases (see diagram; as tax rises from 0 to T |
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http://www.umt.edu/econ/Barrett/econ111/lec8.htm
(309 words)
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| | NCPA - Tax Issues - Deadweight Loss Of Federal Taxes |
| | The efficiency loss from current income taxes is more than 30 percent. | | | Previous estimates have stated that for every dollar raised in tax revenue, there is an efficiency loss of 2.5 percent. | | | Source: "The Deadweight Loss of Income Taxes," Economic Intuition, Spring 2000. |
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http://www.ncpa.org/pi/taxes/pd053000g.html
(225 words)
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| | Bundling Information Goods: |
| | This loss of information could impose a substantial cost: if total revenues are divided among the producers of the individual information goods without regard to how much value they each contributed, there will be significant underincentive for the development of new goods because of the "free rider" problem (Holmstrom, 1982). | | | Similarly, when consumer valuations are correlated to the same underlying variable, mean deadweight loss may not be eliminated by bundling and may even increase, depending on the actual distribution of the valuations. | | | The number of goods necessary to make bundling desirable, and the speed at which deadweight loss and profit converge to their limiting values, depend on the distribution of consumer valuations. |
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http://www.stern.nyu.edu/~bakos/big/big.html
(10916 words)
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| | Taxes, Deadweight Loss and Intertemporal Female Labor Supply |
| | The deadweight loss from taxation of wife’s labor income from 1980-1987, for a median household is estimated to be 57% of tax revenue as opposed to 49% for a switch to a revenue-neutral proportional tax system. | | | I estimate exact deadweight loss from taxes and find that deadweight loss from a 20% increase in the marginal tax rate is about 30% of tax revenue collected, evaluated at the sample mean. | | | Finally, the intertemporal preference parameters are estimated using GMM. |
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http://www-cpr.maxwell.syr.edu/cprwps/wps61abs.htm
(347 words)
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| | The measurement of the deadweight loss arising from transaction costs -- the sum of the cost to buyers arising from ... |
| | The measurement of the deadweight loss arising from transaction costs -- the sum of the cost to buyers arising from their searc | | | A more interesting concept than total transactions cost, however, is marginal transactions cost, since the real marketing issue is not whether perfect information or none should be provided, but given imperfect information whether there are benefits to providing additional information as to the availability of a product with specified quality. | | | The total of welfare loss due to transaction costs t is the familiar deadweight loss triangle, ABC, PLUS total transaction costs, tQ |
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http://www.willamette.edu/~fthompso/ManEX/Sem207_ProdDurability/Transcost.htm
(2484 words)
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| | Taxes and Deadweight Loss |
| | But by driving a wedge between how the good is valued and the price paid, the tax results in a deadweight loss in an amount equal to the magenta triangle. | | | After you impose a tax some of those surpluses are appropriated by the taxing authority in an amount equal to the gray strip. |
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http://courses.temple.edu/economics/tutorials/Econ_Principles/Taxes/efficiency_tax.html
(85 words)
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| | The Deadweight Loss Of Chistmas |
| | Sun executives weigh in on the company's direction as it reports a loss of $760 million for the third quarter and announces a sweeping corporate reorganization of its business units with an eye on cost structure. | | | Real revenue up, but loss widens 04/28/2004 04:40 PM | | | Reuters - Vivendi Universal posted a near doubling in its first-half net loss to 1.86 billion euros ($2.28 billion) on Tuesday, hit by currency translation losses linked to its entertainment deal with NBC, but cellphone unit SFR boosted profits at the operating level. |
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http://www.stargeek.com/item/49137.html
(2106 words)
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| | FRB Minneapolis Research Archive - Another Note on Deadweight Loss |
| | Kay’s computation of the marginal deadweight loss does not yield the change in this measure for small changes in commodity tax rates, however. | | | ABSTRACT: In a recent article, J. Kay has proposed a useful measure of the deadweight loss arising from a commodity tax system. | | | The measure answers the question, How much more would the taxed consumer be willing to pay in a lump sum rather than as a commodity tax? |
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http://minneapolisfed.org/research/sr/sr63.html
(119 words)
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| | Sample questions Comprehensive Exams |
| | Economists almost universally claim that government intervention in a freely operating competitive market economy through either price-ceiling or price-floor would invariably lead to a misallocation of resources the result of which is a deadweight loss to society. | | | Is a deadweight loss arising from government intervention of the above nature, equally shared by consumers and producers? | | | a) Using a demand and supply diagram, clearly indicate the deadweight loss resulting from government intervention due to either a price-ceiling or price-floor. |
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http://www.kzoo.edu/econ/compquest.htm
(910 words)
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| | Taxes, Organizational Form, and the Deadweight Loss of the Corporate Income Tax |
| | The implied deadweight loss of the corporate income tax is around 5-10% of revenue. | | | "Taxes, organizational form, and the deadweight loss of the corporate income tax," Journal of Public Economics, Elsevier, vol. | | | Taxes, Organizational Form, and the Deadweight Loss of the Corporate Income Tax |
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http://www.unites.uqam.ca/ideas/data/Papers/nbrnberwo6173.html
(439 words)
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| | The economics of festival gifts |
| | Deadweight loss consists of the net loss in social welfare on account of benefits differing from the foregone opportunity cost. | | | Given that Americans spend around $ 50 billion during Christmas, Waldfogel put the deadweight loss of Christmas shopping at as high as between $ 5 billion and $ 17 billion. | | | The most erudite of these was that it was wrong to equate personal utility with dollars spent. |
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http://www.rediff.com/money/2004/nov/14guest1.htm
(677 words)
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| | Economics 101: Taxes, Deadweight Loss and Savings » Outside The Beltway |
| | Those two triagnles comprise what is known in public finance circles as the deadweight loss of taxes. | | | It represents transactions that would take place, but for the imposition of the tax. | | | Now, taxes are not the only thing that can affect the savings rate. |
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http://www.outsidethebeltway.com/archives/8367
(2231 words)
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| | SSRN-Remedies for Price Overcharges: The Deadweight Loss of Coupons and Discounts by A. Polinsky, Daniel Rubinfeld |
| | SSRN-Remedies for Price Overcharges: The Deadweight Loss of Coupons and Discounts by A. Polinsky, Daniel Rubinfeld | | | Keywords: price fixing, antitrust remedies, coupons, discounts, deadweight loss | | | Keywords: Price fixing, antitrust remedies, coupons, discounts, deadweight loss |
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http://papers.ssrn.com/sol3/papers.cfm?abstract_id=471001
(497 words)
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| | EconLog, Deadweight Loss (2002-09-13): Library of Economics and Liberty |
| | Deadweight loss is the amount that taxes cost the public that is in excess of the revenue collected by the government. | | | Apart from compliance costs, how else do taxes impose deadweight loss? | | | What Freese refers to is one component of what economists call deadweight loss. |
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http://econlog.econlib.org/GQE/gqe266.html
(222 words)
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| | Truck and Barter: Christmas Deadweight Loss: Objectively Better Gifts? |
| | For instance, on a Pottery Barn card, the approximately $8.50 average difference between actual card value and price it can be bought for might be a valuation for the difference between the monetary value laid out by the purchaser and the receiver's value -- a decent portion of the deadweight loss. | | | You'll see a list of current cards available and at what price they can be purchased. | | | Could the difference between the value on the card and the price the card finally sells for serve as a measure of approximate loss on this kind of gift? |
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http://www.truckandbarter.com/mt/archives/000363.html
(855 words)
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| | IngentaConnect TAX AVOIDANCE AND THE DEADWEIGHT LOSS OF THE INCOME TAX |
| | The full deadweight loss is easily calculated using the compensated elasticity of taxable income to changes in tax rates because leisure, excludable income, and deductible consumption are a Hicksian composite good. | | | Traditional analyses of the income tax greatly underestimate deadweight losses by ignoring its effect on forms of compensation and patterns of consumption. | | | The relative deadweight loss caused by increasing existing tax rates is substantially greater and may exceed $2 per $1 of revenue. |
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http://api.ingentaconnect.com/content/mitpress/restat/1999/00000081/00000004/art00010
(179 words)
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| | [No title] |
| | = ó 4 _ þÅ ² u ðþ GJþ ó 3 ¨- Deadweight Loss and Tax Revenue as Taxes Vary ¡$ . - $ $ ¨t With each increase in the tax rate, the deadweight loss of the tax rises even more rapidly than the size of the tax. ¡" u t $ GJþ $ ó 4 ¨" Deadweight Loss and Tax Revenue... ¡$ # " $ $ ó 5 ¨" Deadweight Loss and Tax Revenue... ¡" # " $ $ ó 6 ¨" Deadweight Loss and Tax Revenue... ¡" # " $ $ ó I ¨ Deadweight Loss and Tax Revenue ¡$ ( ( ¨Ð For the small tax, tax revenue is small. | | | As the size of the tax rises, tax revenue grows. | | | Tax revenue first rises with the size of a tax. |
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http://www.wbu.edu/a/a06b03/huahe/Chap_08.ppt
(791 words)
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| | Waldfogel's unwanted gift |
| | Applying these results to the overall incidence of gift-giving in the United States Professor Waldfogel estimated that the total loss to the American economy attributable to Christmas 1992 alone was between $4 billion and $13 billion. | | | The difference in value between what I bought and what you would have done with the money is a measure of the inefficiency of gift giving — the deadweight loss of Christmas. | | | Suppose I give you a tie that cost me $50. |
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http://www.johnkay.com/in_action/171
(837 words)
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| | Deadweight loss - Wikipedia, the free encyclopedia |
| | Deadweight loss can be caused (though not necessarily) by monopoly pricing (or even pricing in markets with high fixed costs), externalities or taxes or subsidies. | | | Deadweight loss can be thought of destroying a given quantity of a good or service in question, and in many cases natural waste in a system (like leakage from water pipes) is equivalent to, and is also called, deadweight loss. | | | The term deadweight loss may also be referred to as the "excess burden of monopoly" or the "excess burden of taxation". |
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http://en.wikipedia.org/wiki/Dead_weight_loss
(259 words)
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| | Economics Interactive |
| | The distortion costs of inflation are the losses of efficiency caused when reduces certainty and warps decisions and relative prices. | | | The amount of capital used up during a period. | | | Deadweight losses are losses of potential consumer or producer surplus caused by market imperfections (e.g., monopoly power or externalities) or distortions introduced by inefficient taxes, laws, or regulations. |
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http://www.unc.edu/depts/econ/byrns_web/Economicae/EconomicaeD.htm
(4261 words)
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| | Truck and Barter: Gift Swapping: Reducing the Deadweight Loss of Christmas |
| | Giving a gift at Christmas isn't as good as giving cash, so the idea goes, since the person who receives the gift values it less than something of equal monetary value that they would have preferred more. | | | Giving a gift at Christmas isn't as good as giving cash, so the idea goes, since the person who receives the gift values it less than something of equal monetary value that they would have preferred more. | | | You don't value my gift at a full $100, so there is loss.) This, however, is up to debate. |
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http://truckandbarter.com/mt/archives/000361.html
(402 words)
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| | The Deadweight Loss |
| | The difference between the two cases is that the government gets the revenue from a tax, whereas a private firm gets the monopoly profit. | | | The deadweight loss caused by a monopoly is similar to the deadweight loss caused by a tax. |
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http://www.cameron.edu/~abduls/mpp/chap15/tsld032.htm
(41 words)
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| | Division of Labour: Oprah, the IRS, and Deadweight Loss |
| | The winner not only lost the money she has to pay in taxes, she also lost the Z-28 and had to settle for the regular car. | | | Sure they don't get the fancy car they'd expected but at least they come out even on the day after taxes. | | | This is a great example of deadweight loss. |
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http://www.divisionoflabour.com/archives/000168.php
(370 words)
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| | EconPapers: Taxation incentives and deadweight loss in a system of intergovernmental transfers |
| | It is shown that RTS equalization grants effectively compensate local governments for a portion of the deadweight loss associated with taxes, and consequently the grants may tend to increase the distortionary tax rates chosen by local governments. | | | Abstract: Intergovernmental transfer programs in many federal systems, including Canada, attempt to equalize differences in subnational jurisdictions' tax capacities on the basis of the so-called representative tax system (RTS). | | | This may be the case even when equalization is confined to tax bases which are themselves non-distortionary, such as the taxation of pure economic rents. |
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http://netec.wustl.edu/WoPEc/data/Papers/tortecipamsmart-96-03.html
(228 words)
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| | Deadweight loss |
| | Common causes of deadweight losses are monopoly pricing (or even pricing in markets with high fixed costs), externalities or taxes or subsidies. | | | Loss of health, loss of pet, loss of job. | | | Weight Loss For All Provides weight loss solutions through education. |
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http://www.serebella.com/encyclopedia/article-Deadweight_loss.html
(392 words)
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| | Monopoly Inefficiency |
| | Thus, the benefits of monopolization are less than the costs, and the difference -- the excess cost -- is measured by the area of the (red) triangle to the right. | | | This loss of consumers' surplus is called the "deadweight loss" (meaning the monopoly profits are not enough to offset it) or the "welfare triangle" and is a measure of the waste due to monopoly restriction of output. |
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http://william-king.www.drexel.edu/top/prin/txt/Monch/Mon21.html
(236 words)
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| | Deadweight loss - finance |
| | Usually identified in a supply-and-demand diagram in terms of change in consumer and producer surplus together with government revenue. | | | The net loss in economic welfare that is caused by a tariff or other source of distortion, defined as the total losses to those who lose, minus the total gains to those who gain. | | | The net of these appears as one or two welfare triangles. |
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http://www.comparedefinitions.com/finance/deadweight-loss.html
(64 words)
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| | Unit 3 Chapter 13 Notes: deadweight loss in monopoly |
| | Signified by rectangle 6 in Figure 13-4, this type of loss redistributes income from consumers to the monopoly. | | | Deadweight loss usually occurs with monopolies because monopoly price typically exceeds MC. | | | The second is the loss of both consumer and producer surplus by society, or deadweight loss. |
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http://openet.ola.bc.ca/econ200/unit3s-micro/chapter13/C13deadweight.html
(194 words)
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| | Deadweight Loss |
| | The costs to society created by an inefficiency in the market. | | | Lost production due to inaccurate forecasting for labor is an example of a deadweight loss. | | | Mainly used in economics, the term "deadweight loss" can be applied to any deficiency due to an inefficient allocation of resources. |
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http://imagefn.investopedia.com/terms/d/deadweightloss.asp
(66 words)
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