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
Pages
-32
From page
33
To page
0
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
Serial Year
2001
Journal title
Economics Letters
Record number
21693
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