The deadweight loss of gift-giving is the loss of efficiency that occurs when the value of the gift to the recipient is less than the cost of the gift to the giver. In this case, economists argue that cash would be a more efficient gift.
Diwali/Deepawali/Laxmi Pooja/Dhanteras is the time of the year when we exchange gifts with our friends and family. And in the Indian context, the deadweight loss actually becomes deadweight gain. Wonder Why?
The most common gift every Diwali is a box of Indian sweets. The typical Indian sweet, be it mysorepak, laddu, barfi, jalebi, peda etc are loaded with high calories from sugar and all the hydrogenated fat it is prepared in. Is that really a gift given the high percentage of people prone to diabetes and heart diseases? Well, how we wish that this box leads to dead weight loss, but what it does is actually lead to weight gain!
How do you avoid the dead weight gain for your recipients? Gift a box ofor a , both much healthier options.
With respect to gifting, people say that it is the thought that counts. And let it be a healthy thought this Diwali.