Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/30504 
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dc.contributor.authorGollier, Christianen
dc.date.accessioned2009-06-29-
dc.date.accessioned2010-05-14T08:20:22Z-
dc.date.available2010-05-14T08:20:22Z-
dc.date.issued2009-
dc.identifier.urihttp://hdl.handle.net/10419/30504-
dc.description.abstractWeitzman (1998) showed that when future interest rates are uncertain, using the expected net present value implies a term structure of discount rates that is decreasing to the smallest possible interest rate. On the contrary, using the expected net future value criterion implies an increasing term structure of discount rates up to the largest possible interest rate. We reconcile the two approaches by introducing risk aversion and risk-neutral probabilities. We show that if the aggregate consumption path is optimized, the two criteria are equivalent. Moreover, they are also equivalent to the Ramsey rule extended to uncertainty.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x2643en
dc.subject.jelD61en
dc.subject.ddc330en
dc.subject.keyworddiscount rateen
dc.subject.keywordasset priceen
dc.subject.keywordRamsey ruleen
dc.subject.keywordcost-benefit analysisen
dc.subject.stwKosten-Nutzen-Analyseen
dc.subject.stwDynamische Investitionsrechnungen
dc.subject.stwAbzinsungen
dc.subject.stwZinsstrukturen
dc.subject.stwOptimale Besteuerungen
dc.subject.stwTheorieen
dc.titleExpected net present value, expected net future value, and the Ramsey rule-
dc.typeWorking Paperen
dc.identifier.ppn603329497en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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