Ramsey famously condemned discounting “future enjoyments” as “ethically indefensible”. Suppes enunciated an equity criterion which, when social choice is utilitarian,... Read more
discounting
The authors of this paper show theoretically that lack of credibility introduces a present bias, as subjects internalise the uncertainty. Hence, experiments that do not ensure credibility may erroneously conclude that observed behaviour is driven by hyperbolic pure time preferences, rather than the rational response to non-credible payoffs. Read more
This paper addresses enduring misunderstandings about ‘social opportunity cost’ versus ‘social time preference’ discounting. Read more
This paper examines the question of whether fighting climate change has the additional advantage of reducing the aggregate risk borne by future generations. This raises the question of the ‘climate beta’, i.e. the elasticity of climate damages with respect to a change in aggregate consumption. Read more
A substantial literature of social discounting has now extended over more than 50 years, but practical approaches in developed economies... Read more
Many investments involve both a long time horizon and risky returns. Making investment decisions thus requires assumptions about time and... Read more
We study collective choice when individuals have heterogeneous discounted utilitarian preferences. Two attractive properties of intertemporal preferences are indistinguishable for... Read more
Countries can make the transition to low-carbon economic growth, overcome poverty and raise living standards, if they both recognise the great opportunities available and embrace an ethical approach to managing climate change, says Nicholas Stern in an address to catholic leaders in Rome. Read more
