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.

Additional Metadata
Keywords Allocative efficiency, Price mark-up
JEL Allocative Efficiency; Cost Benefit Analysis (jel D61), Industry Studies: Manufacturing: General (jel L60), Industry Studies: Primary Products and Construction: General (jel L70), Industry Studies: Services: General (jel L80), Industry Studies: Transportation and Utilities: General (jel L90)
Persistent URL dx.doi.org/10.1016/S0165-1765(97)00021-9, hdl.handle.net/1765/16945
Journal Economics Letters
Citation
van Dijk, M.A, & van Bergeijk, P.A.G. (1997). Resource Misallocation and Mark-ups: An Alternative Estimation Technique for Harberger Triangles. Economics Letters, 54, 165–167. doi:10.1016/S0165-1765(97)00021-9