The evaluation of long-term effects of climate change in cost-benefit analysis has a long tradition in environmental economics. Since the publication of the Stern Review in 2006 the debate about the "appropriate" discounting of future welfare and utility levels was revived and the most renowned...

Undiscounted utilitarianism as a criterion of intergeneration justice has been questioned for different reasons: it has been argued (1) that any complete ordering of allocations with an infinite number of generations guaranteeing an optimal allocation must involve discounting, and (2) that...

We show how optimal saving in a two-period model is affected when prudence and risk aversion of the underlying utility function change. Increasing prudence alone will induce higher savings only if, for certain combinations of the interest rate and the pure time discount rate, there is...