In this paper, we analyze how to utilize discount rates in intergenerational projects. Firstly, neo-classical decision-making is depicted in Ramsey and overlapping-generations models (OLG-models). Afterwards we investigate the utilization of time preference rates and opportunity cost rates in an...

In this paper, we analyze how to utilize discount rates in intergenerational projects. Firstly, neoclassical decision-making is depicted in Ramsey and overlapping-generations models (OLG-models). Afterwards we investigate the utilization of time preference rates and opportunity cost rates in an...

Die Diskontierung ist von zentraler Bedeutung bei der Beurteilung der Effizienz staatlicher Vorhaben. Ihre Anwendung ruft aber auch Kritiker auf den Plan, da sie das Einschwenken auf einen nachhaltigen Wachstumspfad verhindere. Sie plädieren deshalb für den Verzicht auf Diskontierung. Dies...

We analyze the role of "the" utility discount rate and its implications to generation-specific and societal altruism and egoism, respectively, in a neoclassical framework. It is worked out clearly, that two different utility discount rates have to be distinguished: An (inverse)...

This paper analyses the choice of an inter-generational discount rate as well as a method for inter-generational discounting. It is shown that the pure time preference rate is irrelevant for inter-generational comparisons. However, the application of the growth time preference rate - with...