This report estimates the "social rate of time preference" (SRTP) for New Zealand public policy appraisal using a Ramsey equation. It uses the Weitzman (1998) method to derive a declining discount rate schedule of 2% (real) for years 1-30, 1.5% for years 31-100, and 1% for years 101 on. The...

We utilize Bayesian model averaging to estimate a stochastic discount factor (SDF) for single-stock options. A Bayesian model averaging SDF outperforms reduced-form benchmark models in-sample and out-of-sample in pricing option return anomalies and portfolios. We document that the SDF is dense...

Individuals trade present for future consumption across a range of economic behaviors, and this tradeoff may differ across socioeconomic groups. To assess these tradeoffs, we estimate a dynamic model of residential solar adoption and system sizing in California using household-level data on...

We study all theories of justice that disentangle ethical views on intergenerational discounting and intergenerational inequality. Each “modular” social welfare function is uniquely identified by a time-discounting function—capturing attitudes toward time—and an aggregator function—...