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Railroad discounting

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  • Karp, Larry

Abstract

Spatial perspective implies a hyperbolic spatial discount rate. To the extent that discounting with respect to space and to time are analogous, this result provides further evidence that hyperbolic discounting is a good description of how we view the world.

Suggested Citation

  • Karp, Larry, 2015. "Railroad discounting," Economics Letters, Elsevier, vol. 126(C), pages 87-90.
    • Handle: RePEc:eee:ecolet:v:126:y:2015:i:c:p:87-90
    DOI: 10.1016/j.econlet.2014.11.017
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    References listed on IDEAS

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    1. repec:cdl:agrebk:qt04k4b21g is not listed on IDEAS
    2. Harris, Christopher & Laibson, David, 2001. "Dynamic Choices of Hyperbolic Consumers," Econometrica, Econometric Society, vol. 69(4), pages 935-957, July.
    3. Karp, Larry, 2005. "Global warming and hyperbolic discounting," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 261-282, February.
    4. Reyer Gerlagh, 2012. "Carbon Prices for the Next Thousand Years," Review of Environment, Energy and Economics - Re3, Fondazione Eni Enrico Mattei, August.
    5. Heal, G., 1998. "Valuing the Future: Economic Theory and Sustainability," Papers 98-10, Columbia - Graduate School of Business.
    6. Karp, Larry & Tsur, Yacov, 2011. "Time perspective and climate change policy," Journal of Environmental Economics and Management, Elsevier, vol. 62(1), pages 1-14, July.
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    8. Robert J. Barro, 1999. "Ramsey Meets Laibson in the Neoclassical Growth Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1125-1152.
    9. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 443-478.
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    Cited by:

    1. Lemoine, Derek, 2018. "Age-induced acceleration of time: Implications for intertemporal choice," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 143-152.
    2. Yamaguchi, Rintaro & Shah, Payal, 2020. "Spatial discounting of ecosystem services," Resource and Energy Economics, Elsevier, vol. 62(C).

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    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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