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dc.contributor.authorFreeman, Mark C.en_US
dc.date.accessioned2009-09-30en_US
dc.date.accessioned2009-10-01T14:48:49Z-
dc.date.available2009-10-01T14:48:49Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/28104-
dc.description.abstractIn this paper the author proves that the Expected Net Future Value (ENFV) criterion can lead a risk neutral social planner to reject projects that increase expected utility. By contrast, the Expected Net Present Value (ENPV) rule correctly identifies the economic value of the project. While the ENFV increases with uncertainty over future interest rates, the expected utility decreases because of the planner's desire to smooth consumption across time. This paper therefore shows that Weitzman (1998) is right and that, within his economy, the far-distant future should be discounted at its lowest possible rate.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesEconomics Discussion Papers 2009-42en_US
dc.subject.jelD61en_US
dc.subject.jelE43en_US
dc.subject.jelG12en_US
dc.subject.jelG31en_US
dc.subject.jelQ51en_US
dc.subject.ddc330en_US
dc.subject.keywordDiscount ratesen_US
dc.subject.keywordterm structureen_US
dc.subject.keywordcapital budgetingen_US
dc.subject.keywordinterest rate uncertaintyen_US
dc.subject.keywordenvironmental planningen_US
dc.subject.stwUmweltplanungen_US
dc.subject.stwSoziale Diskontrateen_US
dc.subject.stwInvestitionsrechnungen_US
dc.subject.stwZinsstrukturen_US
dc.subject.stwZinsrisikoen_US
dc.subject.stwTheorieen_US
dc.titleYes, we should discount the far-distant future at its lowest possible rate: a resolution of the Weitzman-Gollier puzzleen_US
dc.typeWorking Paperen_US
dc.identifier.ppn609705318en_US
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.en-
dc.identifier.repecRePEc:zbw:ifwedp:200942-
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