We investigate an automobile supply chain where a manufacturer and a retailer serve heterogeneous consumers with electric vehicles (EVs) under a government’s price-discount incentive scheme that involves a price discount rate and a subsidy ceiling. We show that the subsidy ceiling is more effective in influencing the optimal wholesale pricing decision of the manufacturer with a higher unit prod...

The objective of this paper is to adopt a general equilibrium model and determine the socially e¢ cient discount factor, risk free rate and discount rate when there are heterogeneous anticipations about the growth of the economy as well as heterogeneous time preference rates. Among others we tackle the following questions. Is the socially e¢ cient discount factor an arithmetic average of the in...

Gollier and Weitzman (2010) show that if future consumption discount rates are uncertain and persistent, the consumption discount rate should decline to its lowest possible value for events in the most distant future. In this paper, I argue that the lowest possible growth rate of consumption per capita in the distant future is zero (assuming that humans do not die out). Substituting in the Rams...

I show that adding an overlapping generations structure to the canonical New Keynesian model can generate optimal inflation rate is significantly positive. In a baseline calibration of model, target comprised between 0.8% and 3.2% in annual terms. this framework, deviations from long-run price stability are because at which firms discount future profit flows naturally differs planner discounts ...

We estimate discount rates of 555 subjects using a laboratory task and find that these individual discount rates predict inter-individual variation in field behaviors (e.g., exercise, BMI, smoking). The correlation between the discount rate and each field behavior is small: none exceeds 0.28 and many are near 0. However, the discount rate has at least as much predictive power as any variable in...

A mathematical formalism is developed for the existence of unique invariants associated with wide classes of observed discounting behavior. These invariants are ‘exponential discount rate spectra,’ derived from the theory of completely monotone functions. Exponential discounting, the empirically important case of hyperbolic discounting, and so-called sub-additive discounting are each special ca...