Aronsson, Thomas; Löfgren, Karl-Gustaf - Institutionen för Nationalekonomi, Umeå Universitet - 2006
procedures for welfare measurement in the first best apply with minor modifications. This result strengthens the idea behind … using the comprehensive net national product as a welfare indicator. If, on the other hand, part of the habit formation is … exogenous to each consumer, the exact welfare measure will also reflect the associated external effect. …