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THE GREAT ALASKAN MONEY GIVE AWAY PROGRAM
Author(s) -
Olson Dennis O.,
O'brien J. Patrick
Publication year - 1990
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1990.tb01241.x
Subject(s) - dividend , cash , maximization , utility maximization , economics , payment , distribution (mathematics) , perspective (graphical) , state (computer science) , financial economics , econometrics , actuarial science , microeconomics , finance , mathematical economics , mathematics , mathematical analysis , geometry , algorithm
For the past six years the State of Alaska has engaged in a unique program in which annual direct cash distributions have been made to the populace. These distributions represent in a sense dividend payments made to citizens on their individual shares of Alaska's mineral wealth. This paper provides a historic perspective of the Alaska dividend distribution program and examines actual distributions to determine whether they are consistent with utility maximization. We found that either a dramatic change in preferences took place over the past six years or that distributions were inconsistent with intertmporal utility maximization.