ESTIMATE OF WELFARE LOSS FROMMARKET POWER IN UKRAINIAN ECONOMY
Journal Title: Вісник Київського національного університету імені Тараса Шевченка. Економіка. - Year 2014, Vol 2, Issue 155
Abstract
The article investigates the evolution of approaches to estimate welfare loss from market power. Basing on the analysis of advantages and disadvantages of the approaches, the author develops another approach to estimate welfare loss from market power. It uses indicators of market concentration, profitability and interfirm cooperation. Unlike the other approaches it includes not only the estimate of Harberger triangle and an economic rent value, which is an alternative indicator of rent-seekingcost, but also a value of welfare loss increase due to X-inefficiency. Using this approach the author estimates the actual value of welfare loss from market power in Ukrainian economy of 2008-2011. The results of the estimate show that such a value is equal to one third of Ukrainian GDP. Adding this result to the intertemporal curve of empirical estimates of welfare loss from market power testifies its validity, while the curve shows up the upward trend of welfare loss estimates change. Concluding the author makes the resume about actual status of Ukrainian economy and the risks for its next development.
Authors and Affiliations
Anzhelika GERASYMENKO
Keywords
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- EP ID EP403059
- DOI 10.17721/1728-2667.2014/155-2/2
- Views 55
- Downloads 0
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