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"Father Christmas"; by The Kinks

"Father Christmas"; by The Kinks

This flash animation for the song "Father Christmas" by The Kinks demonstrates the deadweight loss associated with gift giving. The instructor can then extend the analysis by discussing how this relates to public policy (cash vs. inkind transfer payments). The animation can be coupled with Joel Waldfogel's article "The Deadweight Loss of Christmas" to emphasize the key concepts. To explore the alternative where gifts may be preferred to cash,...

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