How to aggregate experts' discount rates: An equilibrium approach

Elyès Jouini () and Clotilde Napp

Economic Modelling, 2014, vol. 36, issue C, 235-243

Abstract: We address the problem of a social planner who, as in Weitzman, (2001), gathers data on experts' discount rates and wants to infer the social consumption discount rate. We propose an equilibrium approach and we analyze the expression and the properties of the resulting equilibrium discount rate. We analyze the impact of shifts in the distribution of experts' discount rates on the shape of the yield curve. Finally, we apply our approach to Weitzman's (2001) data to propose discount rates for public sector cost–benefit analysis, in particular for the long term.

Keywords: Consumption discount rate; Equilibrium discount rate; Experts discount rate; Hyperbolic discounting; Cost–benefit analysis; Gamma discounting; Divergence of opinion (search for similar items in EconPapers)
JEL-codes: D61 E43 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:36:y:2014:i:c:p:235-243

DOI: 10.1016/j.econmod.2013.09.052

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