منابع مشابه
Risk-adjusted gamma discounting
It is widely recognized that the economics of distant-future events, like climate change, is critically dependent upon the choice of a discount rate. Unfortunately, it is unclear how to discount distant-future events when the future discount rate itself is unknown. In previous work, an analytically-tractable approach called ‘‘gamma discounting’’ was proposed, which gave a declining discount rat...
متن کاملGamma Discounting
By incorporating the probability distribution directly into the analysis, this paper proposes a new theoretical approach to resolving the perennial dilemma of being uncertain about what discount rate to use in cost-benefit analysis. A numerical example is constructed from the results of a survey based on the opinions of 2,160 economists. The main finding is that even if every individual believe...
متن کاملDiscounting and Risk Neutrality
Let be a binary relation in which is a real vector space of vector-valued discrete-time Ð ¤ ß Z Ñ Z stochastic processes with as the sequence of zero vectors. If satisfies four axioms, then ! Ð ¤ ß Z Ñ there are unique discount factors such that preferences regarding stochastic processes induce prefences among present value random vectors. Three of the axioms are familiar: weak ordering, contin...
متن کاملSocial Discounting under Risk
As a measure of how prosocial behavior depends on social distance, social discounting is defined as the decrease in generosity between the decision maker and the recipient as the social distance increases. While risk is a ubiquitous part of modern life, there is limited research on the relationship between risk and prosocial behavior. In the present experiment, we empirically test whether risk ...
متن کاملDiscounting axioms imply risk neutrality
Although most applications of discounting occur in risky settings, the best-known axiomatic justifications are deterministic. This paper provides an axiomatic rationale for discounting in a stochastic framework. Consider a representation of time and risk preferences with a binary relation on a real vector space of vector-valued discrete-time stochastic processes on a probability space. Four axi...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Environmental Economics and Management
سال: 2010
ISSN: 0095-0696
DOI: 10.1016/j.jeem.2010.03.002