Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: http://hdl.handle.net/10419/155041
Autoren: 
Gollier, Christian
Datum: 
1999
Schriftenreihe/Nr.: 
Nota di Lavoro No. 88.1999
Zusammenfassung: 
We discuss the selection of the socially efficient discount rate for public investment projects that entail costs and benefits in the far distant future. We show that the discount rate should be a decreasing function of time horizon under some specific restrictions on the distribution of uncertain growth and on preferences. We consider a logarithmic random walk for consumption. The benchmark result is that, in the absence of any risk of recession, the yield curve is decreasing if relative risk aversion is decreasing. Relaxing the assumption on the absence of recession requires more restrictions on preferences, as increasing relative prudence.
Schlagwörter: 
Discounting
uncertain growth
prudence
long term
JEL: 
D81
D91
Q25
Q28
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
244.13 kB





Publikationen in EconStor sind urheberrechtlich geschützt.