New research on topics related to the environment and natural resources
Heterogeneous altruism and long-run discounting
Abstract: The long-run pure rate of social time preference (or utility discount rate) is an enormously important component of cost-benefit analysis of long-lived public policies such as climate change, nuclear waste management, and public infrastructure investments. For almost a century, economists and philosophers have had disagreements about the appropriate value of this parameter, leading to substantial disagreements on the benefits of long-run policies. l present a model of intergenerational discounting in which everyone has an unconstrained opinion about how society should discount future generations' wellbeing, but their preferences are non-paternalistic. I show that non-paternalism causes all agents to agree on the long-run pure rate of time preference, thus ending debate on this crucial parameter, and helping economists achieve consensus on how to value long-run policies.
Date: 12 May, 2016
Venue: Royal Swedish Academy of Sciences, Linné Hall, Lilla Frescativägen 4A, Stockholm
After the seminar there will be coffee and mingle
Chandra Kiran, the Beijer Institute, Seminar series organiser
Agneta Sundin, the Beijer Institute, Communication officer