Abstract
Informed by a critical realist approach, this article criticizes the dearth of research on the question of the need for capital that prospective owners of modern Norwegian second homes are faced with. The main method used for theorizing capital need is the model for an applied explanatory science proposed by Bhaskar, the RRREIC schema, which helps us understand the necessary components of a second home transaction. This leads to an in-depth analysis of this phenomenon and specifically traces the mechanisms related to and activated by obtaining a bank loan. Through this a paradox arises and doubt is cast on the sustainability of a loan-based second home ownership. Besides uncovering this paradox, the article concludes that a research approach such as the RRREIC schema can provide expanded understanding of the mechanisms involved in Norwegian second home ownership.
Notes
2 Resolution, Redescription, Retrodiction, Elimination, Identification and Correction.
19 Description, Retroduction, Elimination, Identification and Correction.
21 The number of freely traded second homes accounted for less than a third of the registered traded second homes in 2005 (CitationEricsson 2006). Second homes that are not freely traded include, among others, those acquired by inheritance and private sale. I have not been able to find any figures on how the number of homes in each of these categories compares to the number of freely traded second homes.
25 Expenditures related to activities during stays, e.g. skiing, boating, hunting, relaxing, snacks etc., were insignificant in 1969. In 2008, they accounted for about 25% of the total expenditures.
27 E.g. capital cost and insurance (the only examples given).
46 CitationBjerg 2014. See also Berg for further discussion of the mechanisms of making money.
47 A result of the money multiplier mechanism is also seen in the ratio of physical money that exists in Norwegian currency to the money that exists in ‘virtual’ money — 128,671m NOK and 1,881,477m NOK respectively — indicating that physical money (M0) amounts to 6.8 percent of the broad conception of money (M2). CitationStatistics Norway 2013a.
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Notes on contributors
Rasmus Steffansen
Rasmus Steffansen is a PhD fellow in the urban and regional planning programme at the Norwegian University of Life Sciences.
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