I examine a simple model of rent seeking behavior in order to determine the correct way to measure welfare loss due to rent seeking. I conduct this analysis using a general equilibrium version of the standard partial equilibrium consumers' surplus cost-benefit setup. I conclude that the ordinary...
Seems to me that Tyler's conclusion and your conclusion are a little bit contradictory. Wouldn't the 'deadweight' loss be some difference between the course I have taken and I would have taken lest the government didn't tax me... but the course is always different and not all of it is...
surface, but ultimately creates more problems than it solves. When utilized properly, it is possible to avoid situations of net social loss, excess burden on key sectors of the population, and prevent companies in engaging in allocative inefficiency, due to the irresponsible use of limited ...