In this study an attempt has been made to illuminate the question as to whether there are any reasons for the authorities to take special measures in a situation characterized by a sudden significant decrease in the supply of gasoline. One reason might be that the efficiency of the utilization of resources might be improved by certain measures. Another is that the problem of (welfare) distribution may become important in such a situation. When the supply of gasoline unexpectedly decreases to a level that is lower than normal, the utilization of resources will be affected when buyers and sellers on the gasoline market and related markets adapt themselves to the changed situation. During the process of adjustment, which may take a considerable length of time, however, there will be adjustment costs of various kinds. If the authorities desire to interfere for reasons of efficiency, they must try to decrease the costs for the economy to adjust to the new situation. The ability of the authorities to decrease the adjustment costs depends to a great extent on the one hand, whether or not it is possible to react quickly and flexibly in the situation that has arisen and, on the other hand, how quickly they are able to obtain information on the demand conditions on the gasoline market and related markets. In principle there are three ways to attain a redistribution among various (groups of) individuals. The authorities may affect the disposable incomes of the individuals by means of taxes and transfers, they may alter the prices the individuals pay by means of taxes and subsidies and, finally, they may regulate the quantities of the various goods that may be purchased.

  • Corporate Authors:

    Stockholm University, Sweden

    P.O. Box 6701
    S-11385 Stockholm,   Sweden 
  • Authors:
    • Mårdh, Lars Johannesson
  • Publication Date: 1979-6


  • Swedish

Media Info

  • Features: Figures;
  • Pagination: 90 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00311369
  • Record Type: Publication
  • Source Agency: Swedish National Road and Transport Research Institute (VTI)
  • Report/Paper Numbers: Monograph
  • Files: ITRD, TRIS
  • Created Date: Jul 22 1980 12:00AM