The book studies growth paths in an overlapping generations model with land and exhaustible resources as factors of production. It is shown that land rules out inefficient growth paths.

Two recently published studies argue that conventional parameterizations of cumulative prospect theory (CPT) fail to resolve the St. Petersburg Paradox. Yet as a descriptive theory CPT is not intended to account for the local representativeness effect, which is known to induce 'alternation bias'...