Do you think holiness is something that is produced from a life of obedience?
Holiness is an attribute of God's deity. He is 'holy'. We acquire our holiness by association with Him. This was true of the items in the Temple. They were 'holy' because they were seperate from all other vessels in the world. They were set apart to God. It was their set-apart-ness to God that made them holy.
Holy means 'seperate' and 'other'. When we look at holiness in terms of behavior we have to look at Jesus Christ. There was nothing weird about Jesus and He was not given to a whole lot of wild extremes in things. A lot of things we esteem as 'holy' are nothing more than ascetic practices. He didn't beat His back with a whip or any such thing. This is man trying to be holy.
Holiness is the seperate and otherness of Christ. He was unlike anyone in the perfection of His character and conversation. The HOLY Spirit comes into our lives to make that which was true in Christ- true also in us. The HOLY Spirit comes to make us holy. What does that mean? To make us more like Christ (Christlike). Nothing more and nothing less. If it does not look like Jesus Christ it is not holiness. Folk who are truly holy are not aware of it. They don't look in the mirror and say, "My my my, I am getting so holy!" Folk who truly walk in the power of the Holy Spirit and yield the FRUIT of the Spirit are holy. They yeild their fruit unto holiness and in the end... everlasting life.
When he took away our sins did he also give us his righteousness in return? Does holiness come from him declaring us Holy or do we some how pay a price for it?
To buy holiness would be to buy the Holy Spirit. The apostle rebuked a man for that in Acts. Buying may mean more than money- can I suffer enough for it? Can I work enough for it? Can I 'sacrifice' enough for it? Can I be holy if I fast and pray to the point of death? The answer to all those questions is [i]no[/i]. Holiness is imputed and imparted to the true child of God.
If I might so say, holiness is not a competition either. I used to get into those. I don't do this that and a hundred other things so I am the holiest man I know, right?. Rediculous. My, I don't even drink coffee and that tops many holiness people. Probably made the Lord gag if the truth be told.
Holiness is worked out in us as you say through our obedience to the Holy Spirit and our constantly infilling of Him. We cannot be holy in ourselves. To think we can is to mistake asceticism or legalism with real holiness. This is what the pharisees did. Stay full of the Holy Ghost and walk in the Spirit and you won't have to be preoccupied with being holy. No need to make the word of God more strict than it is and impose on yourself things that God never required. If God deals with you... obey- but trying to make ourselves holier by these other things is vain. I can starve myself to anorexia and not be a single space holier. Because holiness is walking in the person of Jesus Christ. That is all God wants. He wants to make you in the image of His Son.