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Based on the Ramsey equation and an ethically motivated rejection of pure utility time discount, the Stern Review on … the Economics of Climate Change concentrates on the use of the elasticity of marginal utility η in the intergenerational … η is preferable to the use of the pure time discount parameter ρ when a balanced distribution of utility across …
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given the utilitarian criterion, provided that the utility function is appropriately chosen. Hence, undiscounted …
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given the utilitarian criterion, provided that the utility function is appropriately chosen. Hence, undiscounted …
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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...
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