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Discounting in an uncertain world : disentangling the debate on the Weitzman-Gollier puzzle

Buchholz, Wolfgang - 2014

Under conditions of risk it makes a difference whether the discount rate is determined as an expected present or as an expected future value. This difference which is dubbed as the Weitzman-Gollier puzzle has stimulated an intensive discussion which, however, is somewhat confusing. In this paper...

Persistent link: https://www.econbiz.de/10010412052

On differentiated carbon prices and discount rates

Anthoff, David; Dennig, Francis; Emmerling, Johannes - 2021

inefficient policy prescriptions and, furthermore, has the particularly undesirable consequence of incorrectly discounting future …

Persistent link: https://www.econbiz.de/10012602352

Embedded discounting

Sneum, Daniel Møller; Soysal, Emilie Rosenlund; Nesje, … - 2023

forecasted energy prices. Using Danish guidelines as a case study, we explore the discounting assumptions in these input prices …

Persistent link: https://www.econbiz.de/10014383298

Temporary super depreciation allowances for green and digital investments

Funke, Michael; Terasa, Raphael - 2022

As an incentive to increase high-impact investment and boost growth, the German Federal Government is planning to introduce a targeted temporary super depreciation allowance to support much-needed green and digital transitions. Using a calibrated multi-sector DSGE model, we find that the...

Persistent link: https://www.econbiz.de/10013285588

Expected net present value, expected net future value, and the Ramsey rule

Gollier, Christian - 2009

Weitzman (1998) showed that when future interest rates are uncertain, using the expected net present value implies a term structure of discount rates that is decreasing to the smallest possible interest rate. On the contrary, using the expected net future value criterion implies an increasing...

Persistent link: https://www.econbiz.de/10003850252

How should the distant future be discounted when discount rates are uncertain?

Gollier, Christian; Weitzman, Martin L. - 2009

It is not immediately clear how to discount distant-future events, like climate change, when the distant-future discount rate itself is uncertain. The so-called "Weitzman-Gollier puzzle" is the fact that two seemingly symmetric and equally plausible ways of dealing with uncertain future discount...

Persistent link: https://www.econbiz.de/10003910677

Optimum commodity taxation in pooling equilibria

Sheshinski, Eytan (contributor) - 2006

Persistent link: https://www.econbiz.de/10003379775

Learning, structural instability and present value calculations

Pesaran, M. Hashem (contributor); … - 2006

Present value calculations require predictions of cash flows both at near and distant future points in time. Such predictions are generally surrounded by considerable uncertainty and may critically depend on assumptions about parameter values as well as the form and stability of the data...

Persistent link: https://www.econbiz.de/10003300967

Interpreting time horizon effects in inter-temporal choice

Dohmen, Thomas; Falk, Armin; Huffman, David; Sunde, Uwe - 2012

We compare different designs that have been used to test for an impact of time horizon on discounting, using real … declining (hyperbolic) discounting, but with other designs find constant or increasing discounting. As a whole, the data are not … consistent with any of these usual candidate discounting assumptions, and they also imply a violation of transitivity. The …

Persistent link: https://www.econbiz.de/10009503806

Once upon a time preference : how rationality and risk aversion change the rationale for discounting

Traeger, Christian - 2012

)actions, the more weight they receive. If uncertainty is endogenous to the decision process, the new rationale for discounting will … preference ; discounting ; uncertainty ; expected utility ; recursive utility ; risk aversion ; intertemporal substitutability …

Persistent link: https://www.econbiz.de/10009533970