Arbeitspapier
Expected net present value, expected net future value, and the Ramsey rule
Weitzman (1998) showed that when future interest rates are uncertain, using the expected net present value implies a term structure of discount rates that is decreasing to the smallest possible interest rate. On the contrary, using the expected net future value criterion implies an increasing term structure of discount rates up to the largest possible interest rate. We reconcile the two approaches by introducing risk aversion and risk-neutral probabilities. We show that if the aggregate consumption path is optimized, the two criteria are equivalent. Moreover, they are also equivalent to the Ramsey rule extended to uncertainty.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 2643
- Klassifikation
-
Wirtschaft
Allocative Efficiency; Cost-Benefit Analysis
- Thema
-
discount rate
asset price
Ramsey rule
cost-benefit analysis
Kosten-Nutzen-Analyse
Dynamische Investitionsrechnung
Abzinsung
Zinsstruktur
Optimale Besteuerung
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gollier, Christian
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2009
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gollier, Christian
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2009
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