Over on VoxEu Charles Manski makes the case that deadweight loss is merely anti-tax rhetoric, and it should be thrown out of economic discourse!
I actually agree with what he is saying regarding analysis – that economists need to, where possible, look at tax and spending decisions simultaneously. This implies that when we cost-benefit government projects, the implied cost of taxation needs to be explicitly taken into account. I don’t think you’ll find anyone who disagrees.
But I don’t think DWL should go. Read more