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inefficient policy prescriptions and, furthermore, has the particularly undesirable consequence of incorrectly discounting future …
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The tractable general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for additional negative impacts of global warming on utility and productivity growth, mean reversion in the ratio of climate damages to production, labour-augmenting technical...
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, effectively defeating the tyranny of discounting. A back-of-the-envelope calibration suggests that this last result is realistic …
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