Skip to main content
SpringerLink
Log in

Asymptotic Behavior of a Stochastic Discount Rate

  • Published:
Sankhya A Aims and scope Submit manuscript

Abstract

The mean discount rate for a simple stochastic model behaves asymptotically roughly like \(1/\sqrt{n}\) in contrast to the usual geometric discounting in a deterministic model.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Farmer, J.D. and Geanakoplos, J. (2009). Hyperbolic discounting is rational: valuing the far future with uncertain discount rates. CFDP No. 1719. Cowles Foundation, Yale University, New Haven, CT 06520, USA.

Download references

Author information

Authors and Affiliations

  1. Department of Economics, Yale University, New Haven, CT, 06520, USA

    J. Geanakoplos

  2. Santa Fe Institute, Santa Fe, NM, 87501, USA

    J. Geanakoplos

  3. School of Statistics, University of Minnesota, Minneapolis, MN, 55455, USA

    W. Sudderth

  4. School of Mathematics, University of Minnesota, Minneapolis, MN, 55455, USA

    O. Zeitouni

  5. Faculty of Mathematics, Weizmann Institute of Science, Rehovot, 76100, Israel

    O. Zeitouni

Authors
  1. J. Geanakoplos
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. W. Sudderth
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. O. Zeitouni
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to W. Sudderth.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Geanakoplos, J., Sudderth, W. & Zeitouni, O. Asymptotic Behavior of a Stochastic Discount Rate. Sankhya A 76, 150–157 (2014). https://doi.org/10.1007/s13171-013-0037-9

Download citation

  • Received:

  • Revised:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s13171-013-0037-9

AMS (2000) subject classification.

Keywords and phrases.

Search

Navigation