How should the distant future be discounted when discount rates are uncertain?

Gollier, ChristianWeitzman, Martin2017-07-112010Gollier, Christian, and Martin L. Weitzman. 2010. “How Should the Distant Future Be Discounted When Discount Rates Are Uncertain?” Economics Letters 107 (3) (June): 350–353. doi:10.1016/j.econlet.2010.03.001.0165-1765http://nrs.harvard.edu/urn-3:HUL.InstRepos:33373345The 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.en-USDiscount rateTerm structureClimate changeCost–benefit analysisHow should the distant future be discounted when discount rates are uncertain?Journal Article2014-09-16Christian Gollier, Martin Weitzman10.1016/j.econlet.2010.03.001