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and combining those signals with priors to form posteriors. These posterior expectations exhibit as-if discounting: agents … forecasting (e.g., those with more intelligence) exhibit less discounting. Agents with more domain-relevant experience exhibit … less discounting. Older agents exhibit less discounting (except those with cognitive decline). Agents who are encouraged to …
Persistent link: https://www.econbiz.de/10012960695
We present a simple model with income risk and borrowing constraints which yields a “discounted Euler equation.” This feature of the model mutes the extent to which news about far future real interest rates (i.e., forward guidance) affects current outcomes. We show that this simple model...
Persistent link: https://www.econbiz.de/10012995524
We document a form of excess volatility that is irreconcilable with standard models of prices, even after accounting for variation in discount rates. We compare prices of claims on the same cash flow stream but with different maturities. Standard models impose precise internal consistency...
Persistent link: https://www.econbiz.de/10012997883
The choice of discount rate has a significant impact on net benefit estimates when costs today have benefits over long time horizons. Standard U.S. government practice for cost–benefit analysis is to bound such analysis using two alternative rates. These rates are meant to represent the rate...
Persistent link: https://www.econbiz.de/10012906264
, including portfolio theory, accounting, cost of capital, capital structure, compensation, and macroeconomics …
Persistent link: https://www.econbiz.de/10013126211
Nearly all discussions about the appropriate consumption discount rate for climate-change policy evaluation assume that a single discount rate concept applies. We argue that two distinct concepts and associated rates apply. We distinguish a social-welfare-equivalent discount rate appropriate for...
Persistent link: https://www.econbiz.de/10013101826
This paper examines the influence of health conditions on academic performance during adolescence. To account for the … endogeneity of health outcomes and their interactions with risky behaviors we exploit natural variation within a set of genetic … statistical properties for ADHD, depression and obesity. They help to reveal a new dynamism from poor health to lower academic …
Persistent link: https://www.econbiz.de/10012761330
In 2007, approximately one in five children in Zambia lived with an HIV positive adult. We identify the effect of adult antiretroviral therapy (ART) availability at scale on children's educational outcomes by combining data on the expansion of ART availability with two national household surveys...
Persistent link: https://www.econbiz.de/10012980197
An open question in the literature is whether families compensate or reinforce the impact of child health shocks … negative early health shocks at ages 0-3, the other twin sibling who did suffer negative health shocks received RMB 305 more in … terms of health investments, but received RMB 182 less in terms of educational investments in the 12 months prior to the …
Persistent link: https://www.econbiz.de/10013039768
There is a strong, positive and well-documented correlation between education and health outcomes. There is much less … evidence on the extent to which this correlation reflects the causal effect of education on health - the parameter of interest … education on health. Our approach exploits two changes to British compulsory schooling laws that generated sharp differences in …
Persistent link: https://www.econbiz.de/10013143175