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Discounted utilitarianism and the Ramsey equation prevail in the debate on the discount rate on consumption. The utility discount rate is assumed to be constant and to reflect either the uncertainty about the existence of future generations or a pure preference for the present. The authors...
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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)...
Persistent link: https://www.econbiz.de/10010457731
-generational discounting. It is shown that the pure time preference rate is irrelevant for inter-generational comparisons. However, the … maximisation. Opportunity costs should be taken into account not by discounting with their internal rate of return, but by … time preference approach. These considerations lead us to the formulation of a new discounting technique, "Generation …
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Discounted utilitarianism and the Ramsey equation prevail in the debate on the discount rate on consumption. The utility discount rate is assumed to be constant and to reflect either the uncertainty about the existence of future generations or a pure preference for the present. The authors...
Persistent link: https://www.econbiz.de/10010507755
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