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| Hauptverfasser: | , |
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| Format: | Preprint |
| Veröffentlicht: |
2024
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| Schlagworte: | |
| Online-Zugang: | https://arxiv.org/abs/2408.05632 |
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| _version_ | 1866916352990642176 |
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| author | Dong-Xuan, Bach Bich, Philippe |
| author_facet | Dong-Xuan, Bach Bich, Philippe |
| contents | People often face trade-offs between costs and benefits occurring at various points in time. The predominant discounting approach is to use the exponential form. Central to this approach is the discount rate, a unique parameter that converts a future value into its present equivalent. However, a universally accepted discount rate remains a matter of ongoing debate and lacks consensus. This paper provides a robust solution for resolving conflicts in discount rates, which recommends considering all discount rates but aims to assign varying degrees of importance to these rates. Moreover, a considerable number of economists support a theory that suggests equal consideration of future and present utilities. In response to this debate, we introduce a general criterion capable of accommodating situations where it is feasible not to discount future utilities. This criterion encompasses and extends various existing criteria in the literature. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2408_05632 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Dynamic choices, temporal invariance and variational discounting Dong-Xuan, Bach Bich, Philippe Theoretical Economics People often face trade-offs between costs and benefits occurring at various points in time. The predominant discounting approach is to use the exponential form. Central to this approach is the discount rate, a unique parameter that converts a future value into its present equivalent. However, a universally accepted discount rate remains a matter of ongoing debate and lacks consensus. This paper provides a robust solution for resolving conflicts in discount rates, which recommends considering all discount rates but aims to assign varying degrees of importance to these rates. Moreover, a considerable number of economists support a theory that suggests equal consideration of future and present utilities. In response to this debate, we introduce a general criterion capable of accommodating situations where it is feasible not to discount future utilities. This criterion encompasses and extends various existing criteria in the literature. |
| title | Dynamic choices, temporal invariance and variational discounting |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2408.05632 |