The Effect of a Constant or a Declining Discount Rate on Optimal Investment Timing

This paper shows that exponential discounting may have anadvancing effect on the timing of investment, not captured bysensitivity analysis carried out for the complete range of instantaneous discount rates implicit in declining discounting.

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Year of publication:	2002
Authors:	Edwards, Gonzalo
Institutions:	Instituto de Economía, Facultad de Ciencia Económicas y Administrativas
Subject:	Declining discounting \| exponential discounting \| hyperbolic discounting \| investment timing \| project evaluation

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Extent:	application/pdf
Series:	Documentos de Trabajo. - ISSN 0717-7593.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published as "The Effect of a Constant or a Declining Discount Rate on Optimal Investment Timing", Journal of Applied Economics Letters, Volume 10, Number 10, 2003. Number 227
Classification:	D90 - Intertemporal Choice and Growth. General ; H43 - Project Evaluation; Social Discount Rate
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005515221