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The Implications of Hyperbolic Discounting for Project Evaluation
Project Evaluation Hyperbolic Discounting
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2015/9/18
The neoclassical theory of project evaluation is based on
models in which agents discount the future at a constant
exponential rate. But there is strong empirical evidence say
that people discoun...
Hyperbolic Discounting and Positive Optimal Inflation
optimal monetary policy inflati on targeting unemployment Phillips curve nominal inertia monetary policy
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2012/10/30
The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan et al (2003) uses a richer model but still finds deflation opt...