Sustainability in a risky world

John Campbell and Ian Martin

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper studies the restrictions on consumption, portfolio choice, and social discounting implied by a sustainability constraint, that utility should not be expected to decline over time, in an economy with risky investment opportunities. The sustainability constraint does not distort portfolio choice and implies a consumption-wealth ratio and social discount rate that can be considerably higher than the riskless interest rate.

JEL-codes: G11 H43 Q56 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2021-04-13
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http://eprints.lse.ac.uk/118878/ Open access version. (application/pdf)

Related works:
Working Paper: Sustainability in a Risky World (2022)
Working Paper: Sustainability in a Risky World (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:118878

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