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Theoretical Issues in Measuring Distortions in an Economy

Theoretical Issues in Measuring Distortions in an Economy


Abstract: The paper argues that distortions are deviations from marginal cost pricing and are measurable depending on the type of distortion and the nature of economic activities. Distortions are permanent features in market/capitalist type economies. An alternative view of distortions is examined with the contention that the implementation of a people- oriented economic framework would reduce or minimize distortions.

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