Mertens, Jean-François; Rubinchik, Anna - In: Macroeconomic Dynamics 16 (2012) 01, pp. 61-93
For two independent principles of intergenerational equity, the implied discount rate equals the growth rate of real per capita income, say, 2%, thus falling right into the range suggested by the U.S. Office of Management and Budget. To prove this, we develop a simple tool to evaluate small...