Post Profile






The impact of demographics on long-term discount rates

How the future is discounted in cost-benefit analyses is a contested issue, with economists disagreeing on whether approaches to discounting should be prescriptive or descriptive. This column presents a new way to model individuals’ discounting based on a demographic approach. The advantages of a purely mortality-based approach are transparency, an empirical basis, and broad data availability.
read more

share

Related Posts


Discounting the very distant future

Business & Finance / Economics : Vox

Stefano Giglio, Matteo Maggiori, Johannes Stroebel, 21 June 2014 Long-run discount rates reveal how households value payoffs for future generations and have implications for fiscal and climate change policies. This column estimates ...

Optimization and Its Discounts

Business & Finance : EconoSpeak

Trying to reconcile cost shifting with the discounting of future climate change costs and benefits has taken me on some unexpected detours. I was initially thinking about bills of exchange and their role in the early modern era of c...

More on Interest Rates, Ideology and Caring About the Future

Business & Finance : EconoSpeak

In a previous post I referred to the economic principle that low interest and discount rates translate into greater concern for the future relative to the present. At low interest and discount rates you would cut fewer trees, burn l...

Discount Rates and Middle-Class Stagnation

Issues & Causes / Environmentalism : Legal Planet: Environmental Law and Policy

Discount rates are how economists measure the importance of the future versus the present.  If the discount rate is low, we care a lot about the future; the reverse is true if the rate is high. It turns out that one of the key facto...

'Discounting the Very Distant Future'

Business & Finance / Economics : Economist's View

On calculating long-run discount rates: Discounting the very distant future, by Stefano Giglio, Matteo Maggiori, and Johannes Stroebel, Vox EU: Many important policy decisions require a consideration of costs and benefits that arise...

Comments


Copyright © 2016 Regator, LLC