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dc.contributor.authorGollier, Christianen_US
dc.date.accessioned2011-08-12en_US
dc.date.accessioned2011-09-14T13:12:30Z-
dc.date.available2011-09-14T13:12:30Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/49477-
dc.description.abstractUsing the extended Ramsey rule, the socially efficient rate is the difference between a wealth effect and a precautionary effect of economic growth. This second effect is increasing in the degree of uncertainty affecting the future. In the literature, it is usually calibrated by estimating the historical volatility of the growth of GDP in a specific country. In this paper, I show that using cross-section data tends to magnify uncertainty, and to reduce the discount rate. Using a data set covering 190 countries over the period 1969-2010, I justify using a much smaller discount rate around 0.7% per year for time horizons exceeding 40 years.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Energy and Climate Economics 3536en_US
dc.subject.jelD90en_US
dc.subject.jelQ51en_US
dc.subject.ddc330en_US
dc.subject.keyworddiscount rateen_US
dc.subject.keywordprudenceen_US
dc.subject.keywordclimate changeen_US
dc.subject.stwGesamtwirtschaftlicher Konsumen_US
dc.subject.stwSoziale Diskontrateen_US
dc.subject.stwVorsorgesparenen_US
dc.subject.stwVermögenseffekten_US
dc.subject.stwKlimaveränderungen_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwSchätzungen_US
dc.subject.stwWelten_US
dc.titleOn the underestimation of the precautionary effect in discountingen_US
dc.typeWorking Paperen_US
dc.identifier.ppn665789416en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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