Do Declining Discount Rates lead to Time Inconsistent Economic Advice?

Anders Chr. Hansen

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

Resumé

Udgivelsesdato: 01.11
OriginalsprogEngelsk
TidsskriftEcological Economics
Vol/bind60
Udgave nummer1
Sider (fra-til)138-144
Antal sider7
ISSN0921-8009
DOI
StatusUdgivet - 2006

Citer dette

Hansen, Anders Chr. / Do Declining Discount Rates lead to Time Inconsistent Economic Advice?. I: Ecological Economics. 2006 ; Bind 60, Nr. 1. s. 138-144.
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title = "Do Declining Discount Rates lead to Time Inconsistent Economic Advice?",
abstract = "This paper addresses the risk of time inconsistency in economic appraisals related to the use of hyperbolic discounting (declining discount rates) instead of exponential discounting (constant discount rate). Many economists are uneasy about the prospects of potential time inconsistency. The paper discusses whether they have reason to be uneasy. The answer is no. The risk of reversing previous recommendations due to the passing of time alone are not severely larger for hyperbolic discounting than it is for exponential discounting. And it can be managed by the same rules of precaution normally used in long term strategic policy decisions and institutional reforms.",
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Hansen, AC 2006, 'Do Declining Discount Rates lead to Time Inconsistent Economic Advice?', Ecological Economics, bind 60, nr. 1, s. 138-144. https://doi.org/doi:10.1016/j.ecolecon.2006.03.007

Do Declining Discount Rates lead to Time Inconsistent Economic Advice? / Hansen, Anders Chr.

I: Ecological Economics, Bind 60, Nr. 1, 2006, s. 138-144.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

TY - JOUR

T1 - Do Declining Discount Rates lead to Time Inconsistent Economic Advice?

AU - Hansen, Anders Chr.

PY - 2006

Y1 - 2006

N2 - This paper addresses the risk of time inconsistency in economic appraisals related to the use of hyperbolic discounting (declining discount rates) instead of exponential discounting (constant discount rate). Many economists are uneasy about the prospects of potential time inconsistency. The paper discusses whether they have reason to be uneasy. The answer is no. The risk of reversing previous recommendations due to the passing of time alone are not severely larger for hyperbolic discounting than it is for exponential discounting. And it can be managed by the same rules of precaution normally used in long term strategic policy decisions and institutional reforms.

AB - This paper addresses the risk of time inconsistency in economic appraisals related to the use of hyperbolic discounting (declining discount rates) instead of exponential discounting (constant discount rate). Many economists are uneasy about the prospects of potential time inconsistency. The paper discusses whether they have reason to be uneasy. The answer is no. The risk of reversing previous recommendations due to the passing of time alone are not severely larger for hyperbolic discounting than it is for exponential discounting. And it can be managed by the same rules of precaution normally used in long term strategic policy decisions and institutional reforms.

U2 - doi:10.1016/j.ecolecon.2006.03.007

DO - doi:10.1016/j.ecolecon.2006.03.007

M3 - Journal article

VL - 60

SP - 138

EP - 144

JO - Ecological Economics

JF - Ecological Economics

SN - 0921-8009

IS - 1

ER -

Hansen AC. Do Declining Discount Rates lead to Time Inconsistent Economic Advice? Ecological Economics. 2006;60(1):138-144. https://doi.org/doi:10.1016/j.ecolecon.2006.03.007

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