Title: Variables of the Harberger triangle in the financial market

Authors: Kristaps Freimanis; Maija Šenfelde

Addresses: Riga Technical University, Kalnciema Street 6, LV-1048, Latvia ' Riga Technical University, Kalnciema Street 6, LV-1048, Latvia

Abstract: If there are no market failures, perfectly competitive markets will provide an accurate assessment of the risk/return profile of each financial instrument. Thereby identification of the financial market failures is important task to properly address the regulation aimed to minimise the deadweight loss arising from the market failures. In this paper, the authors review scientific literature and the speeches of the European Central Bank to reveal up-to-date financial market failures and propose variables to be used in the Harberger triangle for deadweight loss assessment arising from market failures. Proposed variables cover insights revealed in the literature and central bank speeches' analysis and are broadly available in most of the statistical databases, specialised databases or in the financial statements of banks.

Keywords: central bank speeches; deadweight loss; the Harberger triangle; market failures.

DOI: 10.1504/IJEBR.2025.145856

International Journal of Economics and Business Research, 2025 Vol.29 No.3/4/5, pp.255 - 263

Received: 15 Aug 2022
Accepted: 12 Dec 2022
Published online: 30 Apr 2025 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article