A Note on Discounting an Increasingly Uncertain FutureCitation formats

Standard

A Note on Discounting an Increasingly Uncertain Future. / Chiu, W. Henry.

In: Journal of Public Economic Theory, Vol. 16, No. 6, 01.12.2014, p. 981-993.

Research output: Contribution to journalArticle

Harvard

Chiu, WH 2014, 'A Note on Discounting an Increasingly Uncertain Future', Journal of Public Economic Theory, vol. 16, no. 6, pp. 981-993. https://doi.org/10.1111/jpet.12089

APA

Vancouver

Chiu WH. A Note on Discounting an Increasingly Uncertain Future. Journal of Public Economic Theory. 2014 Dec 1;16(6):981-993. https://doi.org/10.1111/jpet.12089

Author

Chiu, W. Henry. / A Note on Discounting an Increasingly Uncertain Future. In: Journal of Public Economic Theory. 2014 ; Vol. 16, No. 6. pp. 981-993.

Bibtex

@article{c44eb0b5a309406a822df3af2af43f38,
title = "A Note on Discounting an Increasingly Uncertain Future",
abstract = "This note clarifies the roles played by the wealth and precautionary effects in determining the socially efficient discount rate for public investment projects and how the rate should vary over time. We first give a general characterization of the effects of stochastic shifts in the consumption growth rate on the magnitude of the socially efficient discount rate. We then show that increasing uncertainty in the consumption growth rate provides a natural and compelling rationale for discounting more distant future consumption at a lower rate.",
author = "Chiu, {W. Henry}",
year = "2014",
month = "12",
day = "1",
doi = "10.1111/jpet.12089",
language = "English",
volume = "16",
pages = "981--993",
journal = "Journal of Public Economic Theory",
issn = "1097-3923",
publisher = "John Wiley & Sons Ltd",
number = "6",

}

RIS

TY - JOUR

T1 - A Note on Discounting an Increasingly Uncertain Future

AU - Chiu, W. Henry

PY - 2014/12/1

Y1 - 2014/12/1

N2 - This note clarifies the roles played by the wealth and precautionary effects in determining the socially efficient discount rate for public investment projects and how the rate should vary over time. We first give a general characterization of the effects of stochastic shifts in the consumption growth rate on the magnitude of the socially efficient discount rate. We then show that increasing uncertainty in the consumption growth rate provides a natural and compelling rationale for discounting more distant future consumption at a lower rate.

AB - This note clarifies the roles played by the wealth and precautionary effects in determining the socially efficient discount rate for public investment projects and how the rate should vary over time. We first give a general characterization of the effects of stochastic shifts in the consumption growth rate on the magnitude of the socially efficient discount rate. We then show that increasing uncertainty in the consumption growth rate provides a natural and compelling rationale for discounting more distant future consumption at a lower rate.

U2 - 10.1111/jpet.12089

DO - 10.1111/jpet.12089

M3 - Article

VL - 16

SP - 981

EP - 993

JO - Journal of Public Economic Theory

JF - Journal of Public Economic Theory

SN - 1097-3923

IS - 6

ER -