Change search
ReferencesLink to record
Permanent link

Direct link
Measuring Welfare in Dynamic Models with Externalities: Towards Money Metrics Measures
Department of Economics, Uppsala University.
Umeå University, Faculty of Social Sciences, Department of Economics.
2006 (English)Report (Other academic)
Abstract [en]

This paper is concerned with welfare measurement in multisector dynamic general equilibrium models with externalities. We start with the utility metric theory under di¤erent settings, and then transfer them into money metric measures. With ideal accounting prices for all externalities, we show that a money measure of dynamic welfare should encompass both the comprehenstive NNP and consumer surpluses. Under externalities, a forward-looking term re.ecting the present value of the future externalities has to be taken into account. For a local-in-time welfare comparison, we show that growth in conventionally measured NNP would work, provided that an externality-adjusted genuine rate of return is positive.

Place, publisher, year, edition, pages
2006. , 18 p.
Keyword [en]
Growth, welfare, externalities, and money metrics [JEL: D61; D91; Q01]
National Category
Research subject
URN: urn:nbn:se:umu:diva-26827OAI: diva2:274255
Available from: 2009-10-27 Created: 2009-10-27 Last updated: 2014-01-17Bibliographically approved

Open Access in DiVA

No full text

Other links

Search in DiVA

By author/editor
Löfgren, Karl-Gustaf
By organisation
Department of Economics

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 14 hits
ReferencesLink to record
Permanent link

Direct link