IDEAS home Printed from
   My bibliography  Save this article

Welfare Losses in Disequilibrium Markets--An Empirical Illustration


  • Brannlund, Runar


Measures of partial welfare losses are derived for markets where the price may fail to equate demand and supply. The welfare loss is measured as the difference between the sum of consumer surplus and producer surplus when going from a disequilibrium regime to an equilibrium regime. A complication, and special feature, of the analysis is an assumption that the price is determined ex ante by the intersection of expected supply and demand. Ex post, however, both demand and supply are exposed to stochastic shocks. This means that since the price is fixed ex ante, the expected loss depends not only on deterministic demand supply shifts, but also on the distribution of the stochastic elements. The Swedish timber market is used as an empirical illustration. Copyright 1993 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Brannlund, Runar, 1993. " Welfare Losses in Disequilibrium Markets--An Empirical Illustration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(2), pages 209-225.
  • Handle: RePEc:bla:scandj:v:95:y:1993:i:2:p:209-25

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scandj:v:95:y:1993:i:2:p:209-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.