Overview

windfall gain


Show Summary Details

Quick Reference

An unexpected addition to income, for example, receiving an inheritance from a distant relative or winning a lottery. Similarly, windfall profit is an unexpected increase in profit for a firm. It is often argued that windfall gains/profits are a good target for taxation since a tax upon them is not distortionary.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.