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Three Sides of Harberger Triangles

James Hines ()

No 6852, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Harberger triangles are used to calculate the efficiency costs of taxes, government regulations, monopolistic practices, and various other market distortions. This paper considers the historical development of Harberger triangles, the associated theoretical controversies, and the contribution of Harberger triangles to subsequent empirical work and theories of market imperfections. Prior to the publication of Arnold Harberger's papers, economists very rarely estimated deadweight losses. The empirical deadweight loss literature expanded greatly since the 1960s now quite common. Meanwhile, critical evaluation of deadweight loss estimates led to new theories of rent-seeking and other inefficiencies of economies with multiple distortions.

JEL-codes: H21 D61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: 1998-12
Note: PE
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Published as Journal of Economic Perspectives, Vol. 13, no. 2 (Spring 1999): 167-188.

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