منابع مشابه
Declining Discount Rates Maureen
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...
متن کاملDeclining Discount Rates: The Long and the Short of it
The last few years have witnessed important advances in our understanding of time preference and social discounting. In particular, several rationales for the use of time-varying social discount rates have emerged. These rationales range from the ad hoc to the formal, with some founded solely in economic theory while others reflect principles of intergenerational equity. While these advances ar...
متن کاملDeclining Discount Rates: Economic Justifications and Implications for Long-Run Policy
The use of a Declining Discount Rate (DDR), in cost-benefit analysis (CBA), compared to the use of a Constant Discount Rate, implies that the policy maker will put relatively more effort to improve social welfare in the far distant future than in the shorter time. The choice between the two discount rates is crucial and linked, for example, to the problem of whether we should fight malaria and ...
متن کاملDeclining discount rates and the Fisher Effect: inflated past, discounted future?
Uncertain, yet persistent, real rates of return to capital underpin one argument for using a declining schedule of social discount rates. Yet persistency is only present in approximately the rst three-quarters of the time-series of US Treasury bond yields used by Newell and Pizer [37] to estimate the term structure for the US Environmental Protection Agency. This coincides with the period in w...
متن کاملAgainst High Discount Rates
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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ژورنال
عنوان ژورنال: American Economic Review
سال: 2014
ISSN: 0002-8282
DOI: 10.1257/aer.104.5.538