TY  - JOUR
AU  - Hines,James R., Jr.
TI  - Three Sides of Harberger Triangles
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6852
PY  - 1998
Y2  - December 1998
UR  - http://www.nber.org/papers/w6852
L1  - http://www.nber.org/papers/w6852.pdf
N1  - Author contact info:
James R. Hines
Department of Economics
University of Michigan
343 Lorch Hall
611 Tappan Street
Ann Arbor, MI  48109-1220
Tel: 734/764-2320
Fax: 734/764-2769
E-Mail: jrhines@umich.edu
AB  - 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.
ER  -