How should the distant future be discounted when discount rates are uncertain?

Christian Gollier () and Martin L. Weitzman

Economics Letters, 2010, vol. 107, issue 3, pages 350-353

Abstract: The so-called "Weitzman-Gollier puzzle" is the fact that two seemingly symmetric and equally plausible ways of dealing with uncertain future discount rates appear to give diametrically opposed results. The puzzle is resolved when agents optimize their consumption plans. The long run discount rate declines over time toward its lowest possible value.

Keywords: Discount; rate; Term; structure; Climate; change; Cost-benefit; analysis (search for similar items in EconPapers)
Date: 2010
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Related works:
Working Paper: How Should the Distant Future be Discounted when Discount Rates are Uncertain? (2009)
Working Paper: How Should the Distant Future be Discounted When Discount Rates are Uncertain? (2009)
Working Paper: How Should the Distant Future be Discounted When Discount Rates are Uncertain? (2009)
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