Discounting the Distant Future: How Much Do Uncertain Rates Increase Valuations?

By Richard G. Newell, William A. Pizer. 2003

451 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/f9e799e4a3977abedb84e95b7e3a77a21e48011a

Citations in the corpus

• The social cost of carbon in U.S. regulatory impact analyses: an introduction and critique (2012, unknown): “The Working Group’s lowest discount rate of 2.5 %, based upon the work of Newell and Pizer (2003), was also the highest among available estimates of declining discount rates.21 Two alternatives imply lower effective (constant) discount rates: one officially published by the UK Treasury in…”
• Uncertain discount rates in climate policy analysis (2004, unknown): “Because it is this variation and persistence that create the uncertainty effect, quantifying these features seems a better strategy than building a more complex and less transparent structural model (Newell and Pizer, 2003).”
• Discounting and the social cost of carbon: A closer look at uncertainty (2006, unknown): “Assuming that the past is informative of the future and that interest rates are persistent, Newell and Pizer (2003) try to operationalise Weitzman’s (2001) work.”
• How Should the Distant Future Be Discounted When Discount Rates are Uncertain? (2010, unknown): “However, in some ways this special case (9) obscures rather than illuminates the act of seeing through to the core theoretical structure driving the model’s results.”
• The consumption-based determinants of the term structure of discount rates (2007, unknown): “See also Arrow et al. (1996), Weitzman (1998, 2001), Newell and Pizer (2003) and Groom, Koundouri, Panopoulou and Pantelidis (2004).”
• Valuing the future: recent advances in social discounting (2003, unknown): “Weitzman’s model has been applied in important work by Newell and Pizer (2000, 2001).”
• Developing a Social Cost of Carbon for US Regulatory Analysis: A Methodology and Interpretation (2013, unknown): “The calculations were done by William Pizer using the original simulation program from Newell and Pizer (2003).”
• Environmental Cost-Benefit Analysis (2008, unknown): “Newell RG, Pizer WA. 2003.”
• “Just give me a number!” Practical values for the social discount rate (2004, unknown): “Furthermore, allowing for this uncertainty means that lower and lower discount rates should be used to discount consumption flows that occur farther and farther in the future (Newell and Pizer, 2003; Weitzman, 2001).”
• Should Governments Use a Declining Discount Rate in Project Analysis? (2014, unknown): “Other researchers have estimated certainty-equivalent discount rates based on historical time series of interest rates (e.g., Groom et al. 2007; Hepburn et al. 2009; Newell and Pizer 2003).”
• Global Warming and Hyperbolic Discounting (2004, unknown): “In Newell and Pizer (2003) the discount rate follows an ARMA process.”