Resource Misallocation and Mark-Up Ratios: An Alternative Estimation Technique for Harberger Triangles
Posted: 1 May 2010
Date Written: January 1, 1997
Roeger's method (Roeger, 1995), which analyses the relationship between primal and dual productivity measures, can also be used to directly estimate from readily available data the static welfare loss due to a suboptimal allocation of the factors of production.
Keywords: Price mark-up, Allocative efficiency
JEL Classification: D61, L60, L70, L80, L90
Suggested Citation: Suggested Citation