Are Net Discount Rates Stationary?: Some Further Evidence
نویسندگان
چکیده
منابع مشابه
Are Net Discount Ratios Stationary? Evidence of Mean-reversion and Persistence
This article extends the debate initiated by Haslag, Nieswiadomy, and Slottje (1991, 1994) and Gamber and Sorensen (1994) in this journal about whether the net discount ratio can be described as a stationary process. Haslag, Nieswiadomy, and Slottje found discount ratios to be stationary. Gamber and Sorensen concluded that they are nonstationary; however, they identified the source of the nonst...
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HE relationship between the Federal Reserve’s discount rate and money market interest rates continues to be a topic of nuch interest and even more confusion. A significant number’ of money mar-ket analysts and some in public service believe that the discount rate is an iniportant tool through which the Federal Reserve exerts its influence overthe economy — particularly market interest rates. Th...
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Intertemporal discount rates vary widely across contexts and individuals. We propose that a sizable fraction of this variation results from differences in how relative attention is allocated to different features of the decision, such as immediate versus future rewards. We tested this hypothesis using an experiment in which subjects chose between receiving a smaller-sooner and a larger-later mo...
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In the economics of climate change, the future benefits of greenhouse gas emissions abatement are commonly discounted at a rate equal to the long-run return on corporate stocks, which averaged 6% per year during the 20 century. Since a 6% discount rate implies that one dollar of benefits obtained one century from the present attains a present value of less than one cent, this method implies tha...
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In this paper we ask whether the US government should replace its current discounting practices with a declining discount rate schedule, as the UK and France have done, or should continue to discount the future at a constant exponential rate. To address the question, we briefly present the theoretical basis for a declining discount rate (DDR) schedule, but focus on how, in practice, a DDR could...
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ژورنال
عنوان ژورنال: The Journal of Risk and Insurance
سال: 1994
ISSN: 0022-4367
DOI: 10.2307/253574