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Numerical Analysis of Non-Constant Discounting with an Application to Renewable Resource Management Author info | Abstract | Publisher info | Download info | Related research | Statistics Tomoki Fujii (Singapore Management University)
Larry Karp (University of California, Berkeley and Giannini Foundation)
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The possibility of non-constant discounting is important in environmental and resource management problems where current decisions affect welfare in the far-distant future, as with climate change. The difficulty of analyzing models with non-constant discounting limits their application. We describe and provide software to implement an algorithm to numerically obtain a Markov Perfect Equilibrium for an optimal control problem with non-constant discounting. The software is available online. We illustrate the approach by studying welfare and observational equivalence for a particular renewable resource management problem.
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Paper provided by Department of Agricultural & Resource Economics, UC Berkeley in its series Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series with number
1019.
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Date of creation: 31 May 2006Date of revision:
Handle: RePEc:cdl:agrebk:1019Note: oai:cdlib1:are_ucb-1116Contact details of provider: Postal: 207 Giannini Hall #3310, Berkeley, CA 94720-3310 Phone: (510) 642-3345 Fax: (510) 643-8911 Email: Web page: http://repositories.cdlib.org/are_ucb/ More information through EDIRC
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Keywords: Non-constant discounting ; numerical methods ; non-renewable resources ; observational equivalence. ; References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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