Thursday, November 30, 2006

I've always thought the pictorial explanation of deadweight loss was the most elegant, but some of Greg Mankiw's readers have risen to his challenge and explained well in words what deadweight loss is (3:29 PM, Anonymous) and why it rises approximately in proportion to the square (11:41 AM, Karl Smith) of the tax on a transaction.


Blogger Kent said...

Yes, that is an elegant diagram. Nice to see Wikipedia get it right now and then.

11/30/2006 9:32 PM  

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