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Learning and Irreversibility: An Econmic Interpretation of the "Precautionnary Principle"

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Author Info
Gollier, C.
Jullien, B.
Treich, N.

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Abstract

We consider the problem of the optimal use of a good whose consumption can produce damages in the future. Potential damages are proportional to the accumulated lifetimeconsumption of the good. Scientific progress is made over time that provides information on the distribution of the intensity of potential damages.

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Publisher Info
Paper provided by Toulouse - GREMAQ in its series Papers with number 97.470.

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Length: 24 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:gremaq:97.470

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Related research
Keywords: RISK SAVINGS ENVIRONMENT

Find related papers by JEL classification:
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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