Students can also estimate the reduction of the deadweight loss due to the imposition of the congestion charge in 2003. The case provides a good illustration of how an unregulated market with negative ...

Learn the definition of positive and negative externalities and which methods economists use to measure externalities in theory and in practice.

THE logic behind congestion pricing—tolling roads to maintain free-flowing traffic conditions—is pretty straightforward. When a driver enters a road space, he receives some benefit (the ...

Paul Solman: What is the deadweight loss of Christmas? Joel Waldfogel: Well the deadweight loss of Christmas is just the waste that arises from people making choices for other people.

If the deadweight loss estimates of Professor Waldfogel are accurate, that would mean that between $85 billion and $283 billion of the spending on gifts this holiday season will be wasted. 4.

Update: Here’s a tool for calculating the deadweight loss for increases in the minimum wage from the Political Calculations blog. Using some of the default assumptions, a quick analysis shows ...