The Effect of a Constant or a Declining Discount Rate on Optimal Investment Timing

Gonzalo Edwards

No 227, Documentos de Trabajo from Instituto de Economia. Pontificia Universidad Católica de Chile.

Abstract: This paper shows that exponential discounting may have anadvancing effect on the timing of investment, not captured bysensitivity analysis carried out for the complete range of instantaneous discount rates implicit in declining discounting.

Keywords: Declining discounting; exponential discounting; hyperbolic discounting; investment timing; project evaluation (search for similar items in EconPapers)
JEL-codes: D90 H43 (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published as "The Effect of a Constant or a Declining Discount Rate on Optimal Investment Timing", Journal of Applied Economics Letters, Volume 10, Number 10, 2003.

Downloads: (external link)
https://www.economia.uc.cl/docs/doctra/dt-227.pdf (application/pdf)

Related works:
Journal Article: The effect of a constant or a declining discount rate on optimal investment timing (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ioe:doctra:227

Access Statistics for this paper

More papers in Documentos de Trabajo from Instituto de Economia. Pontificia Universidad Católica de Chile. Contact information at EDIRC.
Bibliographic data for series maintained by Jaime Casassus ().