Externalities are the spillover effects of a market activity that affect the welfare of others who are not directly involved. For example, pollution from a factory is a negative externality that ...

Definition: It is the loss of economic efficiency in terms of utility for consumers/producers such that the optimal or allocative efficiency is not achieved. Description: Deadweight loss can be stated ...

The traditional method of analyzing the distorting effects of the income tax greatly underestimates its total deadweight loss as well as the incremental deadweight loss of an increase in income tax ...

Applying a tax to broadband in 1998 would have reduced the quantity and generate a large deadweight loss in the conventional model but when the analysis accounts for the fixed costs of entering new ...