"This careful and thorough book provides readers with a theoretical foundation for how to think about the discount rate. It starts with a simple case and then relaxes different assumptions to show how the discount rate is affected. A complete compilation of determinants, this book fills a gap in the literature."--Conny Olovsson, Stockholm University
"Pricing the Planet's Future explores the history and future of the modern economic theory of discounting and its consequences for sustainable development. Written for professional economists and graduate students, this book is one of the best on dynamic decision making."--Jason Shogren, University of Wyoming
Inhaltsverzeichnis
Preface vii Introduction 1 Part I: The Simple Economics of Discounting 1 Three Ways to Determine the Discount Rate 17 2 The Ramsey Rule 26 3 Extending the Ramsey Rule to an Uncertain Economic Growth 41 Part II: The Term Structure of Discount Rates 4 Random Walk and Mean-Reversion 61 5 Markov Switches and Extreme Events 74 6 Parametric Uncertainty and Fat Tails 84 7 The Weitzman Argument 98 8 A Theory of the Decreasing Term Structure of Discount Rates 111 Part III: Extensions 9 Inequalities 131 10 Discounting Non-monetary Benefits 149 11 Alternative Decision Criteria 168 Part IV: Evaluation of Risky and Uncertain Projects 12 Evaluation of Risky Projects 185 13 The Option Value of Uncertain Projects 203 14 Evaluation of Non-marginal Projects 215 Global Conclusion 225 Index 227
