Aslaksen et al. (1990) concluded that the petroleum wealth of Norway, and hence the permanent income from petroleum extraction, was as uncertain as the yearly oil revenues. Their conclusion was based on wealth estimates using official price projections, with no independent empirical analysis of...

In this paper we provide a formal analysis to evaluate the subtraction of defensive expenditures from GDP. We consider expenditures that are used to produce non- market goods as candidates for being subtracted from GDP. It will be demonstrated that income net such expenditures will account for...

It is shown that if social welfare is the sum of logaritmic utility function, the optimal income distribution and the welfare effect of any income redistribution is independet of the equivalence scales. In optimum all households have the same per capita income. Based on this observation it is...

In this paper, we present an economic model of moral motivation. Consumers prefer regarding themselves as socially responsible individuals. Voluntary contributions to public goods are motivated by this preference. The self-image as socially responsible is determined by a comparison of one's...

This paper examines the implications of status-seeking behavior for long-term growth in a competitive economy. We explore the intuitive hypothesis that the quest for enhanced economic status leads to excessive levels of production and consumption. In a Ramsey growth model in which preferences...

Many African countries are richly endowed with land, but the productive potential of the land base has been underutilised in farming systems with low intensity of external inputs and high intensity of labour. At the same time, mining and erosion of soils have been common features of rural Africa...

The transition from more traditional to modern modes of production has large implications for time allocation, accumulation of social capital, market and non-market production, consumption, as well as for the environmental externalities of production and consumption. In this paper we explicitly...

At the initial stage of this project, the project group consisted of Asbjørn Aaheim, Magnus Hatlebakk and the authors. The authors are grateful for the discussion with the other project participants at this stage. We also had very useful discussion with the marine researcher Sigurd Tjelmeland...

Economic models typically assume that individual wants are determined by forces exogenous to the economic system. Social psychology and consumer research, in contrast, support the view that the perceived benefits of consumption are strongly affected by endogenously determined social norms. This...

Hirsch (1976) suggested that as consumption grows, an increasing proportion of the benefits people derive from consumption is due to a status effect. Status is a relative concept that cannot be increased on average; thus it may seem reasonable to expect that as consumption grows, the marginal...