The effect of a constant or a declining discount rate on optimal investment timing
This paper shows that exponential discounting may have an advancing effect on the timing of investment, not captured by sensitivity analysis carried out for the complete range of instantaneous discount rates implicit in declining discounting.
Volume (Year): 10 (2003)
Issue (Month): 10 ()
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- Paul A. Samuelson, 1937. "A Note on Measurement of Utility," Review of Economic Studies, Oxford University Press, vol. 4(2), pages 155-161. Full references (including those not matched with items on IDEAS)
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