On Multiple Discount Rates
نویسندگان
چکیده
We propose a theory of intertemporal choice that is robust to specific assumptions on the discount rate. One class of models requires that one utility stream be chosen over another if and only if its discounted value is higher for all discount factors in a set. Another model focuses on an average discount factor. Yet another model is pessimistic, and evaluates a flow by the lowest available discounted value. (Chambers) Department of Economics, University of California at San Diego (Echenique) Division of the Humanities and Social Sciences, California Institute of Technology 1
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