The question of whether changes in net national product (NNP) will measure changes in welfare is investigated in this paper. M. Weitzman (1976) demonstrated that, under specific conditions, NNP is proportional to discounted consumption. The result requires NNP to be measured in current prices in...

To secure their membership in a popular group, individuals may contribute more to the group's local public good than they would if group formation were exogenous. Those in the most unpopular group do not have this incentive to contribute. This may result in substantial differences in individual...