How should the distant future be discounted when discount rates are uncertain?

C-Tier
Journal: Economics Letters
Year: 2010
Volume: 107
Issue: 3
Pages: 350-353

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The so-called "Weitzman-Gollier puzzle" is the fact that two seemingly symmetric and equally plausible ways of dealing with uncertain future discount rates appear to give diametrically opposed results. The puzzle is resolved when agents optimize their consumption plans. The long run discount rate declines over time toward its lowest possible value.

Technical Details

RePEc Handle
repec:eee:ecolet:v:107:y:2010:i:3:p:350-353
Journal Field
General
Author Count
2
Added to Database
2026-01-25