Intergenerational discounting: A new approach

Stefan Bayer

No 145, Tübinger Diskussionsbeiträge from University of Tübingen, School of Business and Economics

Abstract: In this paper, we analyze how to utilize discount rates in intergenerational projects. Firstly, neoclassical decision-making is depicted in Ramsey and overlapping-generations models (OLG-models). Afterwards we investigate the utilization of time preference rates and opportunity cost rates in an intergenerational framework. The results lead us to the formulation of an adjusted OLG-discounting method of consumption units, taking into consideration intra- and intergenerational aspects. At the end of our paper, we draw some conclusions concerning environmental and resources policy, and sustainability.

Keywords: Discounting; Time Preference Rate; Opportunity Cost Rate; Overlapping Generations (search for similar items in EconPapers)
JEL-codes: D5 D6 D9 H4 O1 Q2 Q3 (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuedps:145

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