Matches in SemOpenAlex for { <https://semopenalex.org/work/W2155285585> ?p ?o ?g. }
Showing items 1 to 42 of
42
with 100 items per page.
- W2155285585 endingPage "175" @default.
- W2155285585 startingPage "172" @default.
- W2155285585 abstract "Richard Cooper has written an excellent survey on the economic implications of climate change, stressing the possibilities and limits of international policy. I comment here only on one part of the analysis, Cooper's choice of discount rates. I differ sharply with the basis of the analysis and wish to call attention to the extensive literature, dating back more than 40 years, on the choice of discount rates for public investment, which Cooper has disregarded. Cooper refers to and then dismisses abrupdy what may be called the consumption viewpoint. Investment is a sacrifice of consumption, and therefore the rate of return on a new investment should be at least equal to the implicit rate of return on consumption. (In this note, as in Cooper, all rates of return are real, not nominal.) This idea is hardly new; it is Marshall's price of waiting. Bohm-Bawerk famously gave three grounds for the existence of a positive interest rate. First, if consumption is growing over time, the marginal utility of consumption must be falling; therefore, a sacrifice of consumption today must be compensated for by a greater increase in consumption in the future. Second, future consumption is automatically less valuable than the same consumption today, even if their marginal utilities are equal. Third, an increased lag of production behind inputs leads to an increase in production. The first two grounds together define the consumption rate of interest, as expressed in the formula (due, I believe, to Ragnar Frisch) r = p + Qg, where p is the pure rate of time preference (corresponding to Bohm-Bawerk's second ground), 9 is the elasticity of the marginal utility of consumption, and g is the rate of growth of consumption. The third is represented in modern language by the marginal productivity of capital, F^, where F{K) is output as a function of capital (taking labor and natural resources as given). The condition for optimal allocation over time, and the outcome of an intertemporal competitive equilibrium, is r = FK." @default.
- W2155285585 created "2016-06-24" @default.
- W2155285585 creator A5066057807 @default.
- W2155285585 date "2000-08-01" @default.
- W2155285585 modified "2023-09-23" @default.
- W2155285585 title "A Comment on Cooper" @default.
- W2155285585 cites W1522476186 @default.
- W2155285585 cites W2006333167 @default.
- W2155285585 cites W2072987365 @default.
- W2155285585 doi "https://doi.org/10.1093/wbro/15.2.172" @default.
- W2155285585 hasPublicationYear "2000" @default.
- W2155285585 type Work @default.
- W2155285585 sameAs 2155285585 @default.
- W2155285585 citedByCount "6" @default.
- W2155285585 countsByYear W21552855852012 @default.
- W2155285585 countsByYear W21552855852019 @default.
- W2155285585 countsByYear W21552855852022 @default.
- W2155285585 crossrefType "journal-article" @default.
- W2155285585 hasAuthorship W2155285585A5066057807 @default.
- W2155285585 hasConcept C41008148 @default.
- W2155285585 hasConceptScore W2155285585C41008148 @default.
- W2155285585 hasIssue "2" @default.
- W2155285585 hasLocation W21552855851 @default.
- W2155285585 hasOpenAccess W2155285585 @default.
- W2155285585 hasPrimaryLocation W21552855851 @default.
- W2155285585 hasRelatedWork W2093578348 @default.
- W2155285585 hasRelatedWork W2350741829 @default.
- W2155285585 hasRelatedWork W2358668433 @default.
- W2155285585 hasRelatedWork W2376932109 @default.
- W2155285585 hasRelatedWork W2382290278 @default.
- W2155285585 hasRelatedWork W2390279801 @default.
- W2155285585 hasRelatedWork W2748952813 @default.
- W2155285585 hasRelatedWork W2766271392 @default.
- W2155285585 hasRelatedWork W2899084033 @default.
- W2155285585 hasRelatedWork W3004735627 @default.
- W2155285585 hasVolume "15" @default.
- W2155285585 isParatext "false" @default.
- W2155285585 isRetracted "false" @default.
- W2155285585 magId "2155285585" @default.
- W2155285585 workType "article" @default.