论文信息 - Maximizing the expected net future value as an alternative strategy to gamma discounting

Maximizing the expected net future value as an alternative strategy to gamma discounting

Abstract We examine the problem of selecting the discount rate for far distant cash-flows when there is much uncertainty about what will be the future investment opportunities in the economy. We show that it is efficient to take a discount rate that is increasing with the time horizon, and that this rate should tend to the largest possible rate as the horizon tends to infinity. These recommendations are opposite to the ones proposed by Weitzman [Amer. Econ. Rev. 91 (2001) 260].

Christian Gollier | C. Gollier

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