Welfare Losses in Disequilibrium Markets--An Empirical Illustration
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.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" 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.
Volume (Year): 95 (1993)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0347-0520|
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)
If references are entirely missing, you can add them using this form.