Discounting the Long-Distant Future : A Simple Explanation for the Weitzman-Gollier-Puzzle

In this paper, we reconsider the debate on Weitzman's (1998) suggestion to discount the long-run future at the lowest possible rate, referring to Gollier (2004) and Hepburn amp; Groom (2007). We show that, while Weitzman's use of the present value approach may indeed seem questionable, its outcome, i.e. a discount rate that is declining over time, is nevertheless reasonable, since it can be justified by assuming a plausible degree of risk aversion

MoreLess

Year of publication:	[2013]
Authors:	Buchholz, Wolfgang
Other Persons:	Schumacher, Jan (contributor)
Publisher:	[2013]: [S.l.] : SSRN

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	1 Online-Ressource (13 p)
Series:	CESifo Working Paper Series ; No. 2357
Type of publication:	Book / Working Paper
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2008 erstellt
Other identifiers:	10.2139/ssrn.1187622 [DOI]
Classification:	D40 - Market Structure and Pricing. General ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; Q51 - Valuation of Environmental Effects
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012753515