Harberger triangle
E475102
The Harberger triangle is an economic concept representing the deadweight loss or efficiency cost created by market distortions such as taxes, price controls, or monopolies, typically illustrated as a triangular area on a supply-and-demand graph.
Statements (45)
| Predicate | Object |
|---|---|
| instanceOf |
economic concept
ⓘ
graphical representation ⓘ |
| appliesTo |
market distortions
ⓘ
monopoly ⓘ price controls ⓘ quotas ⓘ subsidies ⓘ tariffs ⓘ taxes ⓘ |
| assumes |
competitive market benchmark
ⓘ
well-behaved supply and demand curves ⓘ |
| componentOf |
cost-benefit analysis of policy
ⓘ
welfare analysis of markets ⓘ |
| contrastsWith | tax revenue rectangle ⓘ |
| dependsOn |
elasticity of demand
ⓘ
elasticity of supply ⓘ |
| field |
public economics
ⓘ
welfare economics ⓘ |
| introducedBy | Arnold Harberger NERFINISHED ⓘ |
| locatedBetween |
demand curve and supply curve
ⓘ
distorted price and equilibrium price ⓘ distorted quantity and efficient quantity ⓘ |
| measures | loss in consumer surplus and producer surplus not recouped as revenue ⓘ |
| namedAfter | Arnold Harberger NERFINISHED ⓘ |
| relatedTo |
Kaldor-Hicks efficiency
NERFINISHED
ⓘ
Marshallian surplus ⓘ marginal excess burden of taxation ⓘ welfare triangle ⓘ |
| represents |
deadweight loss
ⓘ
efficiency cost ⓘ loss of total surplus ⓘ welfare loss from market distortions ⓘ |
| shape | triangle ⓘ |
| timePeriod | 20th century origin ⓘ |
| usedBy | economists ⓘ |
| usedFor |
evaluating policy interventions
ⓘ
illustrating deadweight loss in teaching ⓘ measuring efficiency loss from taxation ⓘ |
| usedIn |
analysis of excess burden of taxation
ⓘ
analysis of monopoly power ⓘ analysis of trade restrictions ⓘ microeconomics textbooks ⓘ |
| visualizedAs | triangular area ⓘ |
| visualizedOn |
price-quantity diagram
ⓘ
supply-and-demand graph ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.