Evaluating time streams of income

David E Bell

Omega, 1974, vol. 2, issue 5, 691-699

Abstract: When a decision maker considers possible returns from a business project or investment, he often faces the problem that these returns are not all received at the same time, and thus he must make some adjustments to take account of his time preference for money. After a review of discounting, a utility theory approach is made by developing a two-attribute utility function u(x, t) which represents the desirability of an income of x at a time t in the future. Assumptions to simplify the assessment of this function are considered. Then u(x, t) is used to form a criterion for evaluating infinite time streams of income.

Date: 1974
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/0305-0483(74)90053-X
Full text for ScienceDirect subscribers only

Related works:
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:eee:jomega:v:2:y:1974:i:5:p:691-699

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().