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Windfall gain

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Updated: Aug 20, 2021

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.

Reference: Oxford Press Dictonary of Economics, 5th edt.


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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.