“Deadweight loss” is a term from economics that describes an overall economic or societal loss due to market inefficiencies. Imagine a situation where what buyers are willing to pay for a ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Lea Uradu, J.D., is a Maryland state registered tax preparer, state-certified notary ...

Paul Solman: And why is it called the “deadweight loss”? Joel Waldfogel: Well that’s just a jargon term in economics. It means waste; it’s a loss to one party that’s not offset as a gain ...

The amount of the deadweight loss varies with the shape of the supply and demand curves, and not all taxes have the same impact. Nevertheless, under basic free-market economics, taxation imposes a ...

They must also make changes in their spending habits to avoid taxes, further placing a burden on them and lessening their overall economic quality of life. While taxes create deadweight loss ...

But it is not relevant in this case. The economic theory of the deadweight loss is straightforward. If the basis of taxation is a particular transaction—e.g., a sale, or income earned—then ...

But, argues one famous economics paper, why even bother? In 1993, economist Joel Waldfogel wrote the article that is a favorite of Grinches everywhere, including myself: “The Deadweight Loss of ...

He labelled this destroyed value “deadweight loss,” an economics term used when one party has losses that are not made up by gains for another party. Imagine your friend spent £100 on a new ...

It’s that time of year for my annual CD post on the “deadweight loss of holiday gift-giving.” 1. Economist Steven Landsburg writing in his book “Armchair Economist: Economics and Everyday ...

The amount of the deadweight loss varies with the shape of the supply and demand curves, and not all taxes have the same impact. Nevertheless, at least under basic free-market economics ...