1 THE ECONOMIC APPROACH

11. The deadweight loss is the loss of the potential gains of buyers and sellers emanating from trades that are squeezed out by the tax. It is an excess burden because even though the exchanges that are squeezed out by the tax impose a cost on buyers and sellers, they do not generate tax revenue (because the trades do not take place). 13. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download