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On Multiple Discount Rates
Paper Number: 1418
Date: 05/09/2016
Abstract:

We propose a theory of intertemporal choice that is robust to speci c assumptions on the discount rate. One class of models requires that one utility stream be chosen over another if and only if its discounted value is higher for all discount factors in a set. Another model focuses on an average discount factor. Yet another model is pessimistic, and evaluates a flow by the lowest available discounted value.

Paper Length: 33
Paper: sswp1418.pdf