Title of article :
Spurious deadweight gains
Author/Authors :
Facchini، Giovanni نويسنده , , Hammond، Peter J. نويسنده , , Nakata، Hiroyuki نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2001
Abstract :
Marshallian consumer surplus (MCS) is generally an inaccurate measure of welfare change because it neglects income effects. Suppose these effects overturn the usual demand response to a price change. Then, the deadweight loss from a distortionary tax or subsidy has the wrong sign, that is, there is a spurious deadweight gain
Keywords :
Subgame perfection , Mark-up , Repeated market , Positive price constraint
Journal title :
Economics Letters
Journal title :
Economics Letters