distortionary

Adjective

Meaning

Capable of distorting.

Causing distortion, especially in prices.

Synonyms

Examples

In the context of a distortionary tax, the compensating variation is the minimum lump sum transfer that makes an individual indifferent between the lump sum transfer with tax and no lump sum transfer with no tax (the original situation). Source: Internet

Revenues from auctioning go to the government and can be used for development of sustainable technology citation or to cut distortionary taxes, thus improving the efficiency of the overall cap policy (Fisher et al. Source: Internet

This difference is attributable to the behavioural changes induced by a distortionary tax that are measured by a substitution effect. Source: Internet

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