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How Should the Distant Future be Discounted When Discount Rates are Uncertain?

Gollier, Christian and Weitzman, Martin L. (2010) How Should the Distant Future be Discounted When Discount Rates are Uncertain? Economics Letters, 107 (3). pp. 350-353.

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Official URL: http://tse-fr.eu/pub/22208

Abstract

The so-called “Weitzman–Gollier puzzle” is the fact that two seemingly symmetric and equally plausible ways of dealing with uncertain future discount rates appear to give diametrically opposed results. The puzzle is resolved when agents optimize their consumption plans. The long run discount rate declines over time toward its lowest possible value.

Item Type: Article
Language: English
Date: June 2010
Refereed: Yes
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 18 Jan 2012 06:02
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:22208
URI: http://publications.ut-capitole.fr/id/eprint/3443

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