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different channels through which risk affects evaluation, and have the same qualitative effect of making long-term payoffs more …
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discounting under a disentanglement of risk aversion from aversion to intertemporal substitution. The paper characterizes the … relates different results in the literature by switching between different risk measures. It presents a parametric extension …
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Global warming, alterations of ecosystems, and sunk investments all imply irreversible changes with uncertain future costs and benefits. Two concepts measure how this combination of uncertainty and irreversibility changes the value of preserving an ecosystem or postponing an investment. First,...
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numerically. This analysis enables the hedger to select his appropriate level of risk aversion. …
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