Discounting, Values, and Decisions

• 成果类型: Article
• 署名作者: Quah, John K. -H.; Strulovici, Bruno
• 署名单位: University of Oxford; Northwestern University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/673867
• 发表日期: 2013
• 页码: 896-939
• 关键词: time preference; performance; consumption; impatience; altruism; GROWTH; CHOICE; MARKET

摘要

How do discount rates affect agents' decisions and valuations? This paper provides a general method to analyze this question, allowing stochastic and managed cash flows, stochastic discount rates, and time inconsistency and including arbitrary learning and payoff or utility processes. We show that some of these features can lead to counterintuitive answers (e.g., a more patient agent stops earlier), but we also establish, under simple conditions, theorems yielding robust predictions concerning the impact of discount rates on control and stopping decisions and on valuations. We apply our theory to models of search, experimentation, bankruptcy, optimal growth, investment, and social learning.