What is your discount rate? Experimental evidence of foresters’ risk and time preferences

what is your diagnosis?

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what is your diagnosis?

Heart attack: what is your risk?

Am I likely to have a heart attack? Several things can increase your risk of a heart attack. Some things, such as your age and sex, cannot be changed. But others, such as high blood pressure and high cholesterol, can be treated. Major risk factors for CHD include diabetes, high blood pressure, high cholesterol, male sex, older age, smoking, and a father who had a heart attack before 55 years of...

a case of unilateral proptosis: what is your diagnosis?

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Time Horizon and the Discount Rate

We consider an economy à la Lucas (1978, Econometrica 46, 1429–1446) with a risk-averse representative agent. The exogenous growth rate of the economy follows a random walk. We characterize the set of utility functions for which it is efficient to discount more distant cash flows at a lower rate. The benchmark result is that, when the growth rate is almost surely nonnegative, the yield curve is...