Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5061166 | Economics Letters | 2010 | 4 Pages |
Abstract
The so-called “Weitzman-Gollier puzzle” is the fact that two seemingly symmetric and equally plausible ways of dealing with uncertain future discount rates appear to give diametrically opposed results. The puzzle is resolved when agents optimize their consumption plans. The long run discount rate declines over time toward its lowest possible value.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Christian Gollier, Martin L. Weitzman,