Gollier, Christian - Institut d'Économie Industrielle (IDEI), Toulouse … - 2014
Weitzman (1998, 2001) proposed a simple “gamma discounting” method to characterize the term structure of discount rates …. When future growth rates are positively serially correlated, efficient discount rates today are decreasing with maturity …, and the gamma discounting rule yields discount rates that are larger than the efficient ones. …