Sentences with phrase «deadweight loss»
"Deadweight loss" refers to the economic inefficiency and loss that occurs when resources are not allocated optimally. It usually happens when there is a market distortion, such as taxes or subsidies, which leads to an imbalance in supply and demand. This results in a loss of potential economic benefits for both buyers and sellers, causing an overall loss or waste of resources. Full definition
Furthermore, as stated by the EPA «Biofuels also tend to require subsidies and other market interventions to compete economically with fossil fuels, which creates deadweight losses in the economy.»
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«The Brexit tax would be a pure deadweight loss.
In economic theory there's a notion called deadweight loss, or market inefficiency, which impacts a consumer when the value of an item's utility is less than the price paid for it.
All that said, I still think there are deadweight losses hiding inside that swap books of the major investment banks.
Besides, the income of high earners is more flexible and mobile than the income of other people, so raising their taxes causes the strongest behavioral responses and largest deadweight losses.
Generally, price competition has the effect of lowering prices for goods, increasing output, decreasing deadweight losses, and benefiting consumers.
Each year, abusive patent litigation drains tens of billions of dollars from the economy, creating tremendous deadweight losses as well as a great deal of uncertainty.»
Without more action by the government to help housing, the Fed warns that «the adjustment process will take longer and incur more deadweight losses, pushing house prices lower and thereby prolonging the downward pressure on the wealth of current home owners and the resultant drag on the economy at large.»
She talked for a few minutes about collection costs and the deadweight loss triangles of distorting taxes.
Deadweight loss can be applied to any deficiency caused by an inefficient allocation of resources.
(This isn't just a silly abstract example; economists have documented that this «deadweight loss» actually happens.)
It reports that around 40 per cent of the total cost was spent on «deadweight loss» — that is, providing free meals to pupils whose parents «would otherwise have paid for a school lunch».
As you wind down AIG Financial Products are you finding «deadweight losses» where the subsidiary was fundamentally mishedged?
4) They have systemically mishedged their options exposure, leaving a deadweight loss that the accounting presently papers over.
In fact, his analysis indicated that higher bond mutual fund expenses were a dollar for dollar «deadweight loss.»
By implementing the tax cut via a marginal rate reduction, rather than just mailing people lump - sum checks, the Treasury can reduce the «deadweight loss» caused by distortionary income taxes.