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The economics of risk and time
This book updates and advances the theory of expected utility as applied to risk analysis and financial decision making. Von Neumann and Morgenstern pioneered the use of expected utility theory inExpand
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Trade Credit and Credit Rationing
Asymmetric information between banks and firms can preclude financing of valuable projects. Trade credit alleviates this problem by incorporating in the lending relation the private information heldExpand
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Risk Vulnerability and the temper-ing E ect of Background Risk
Method of operating a warp knitting machine includes, after interruption of a weft running to the weft storage and activation of a machine shut-down device, initially controlling slow-down of the knitting instruments of the machine so that when the machine stops, the weFT storage has been emptied of all but a predetermined number of weft lengths. Expand
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The Risk-Averse and Prudent Newsboy
The effects of risk and risk aversion in the single-period inventory "newsboy" problem are examined. Comparative-static effects of changes in the various price and cost parameters are determined andExpand
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Discounting an uncertain future
We discuss the selection of the socially optimal discount rate for public investment projects that entail costs and benefits in the very long run. More specifically, we examine in an expected utilityExpand
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Pricing the Planet's Future: The Economics of Discounting in an Uncertain World
Our path of economic development has generated a growing list of environmental problems including the disposal of nuclear waste, exhaustion of natural resources, loss of biodiversity, climate change,Expand
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Time Horizon and the Discount Rate
  • C. Gollier
  • Economics, Mathematics
  • J. Econ. Theory
  • 1 December 2002
We discuss the selection of the socially efficient discount rate for public investment projects that entail costs and benefits in the far distant future. Expand
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Aggregation of Heterogeneous Time Preferences
We examine an economy whose consumers have different discount factors for utility, possibly not exponential. We characterize the properties of efficient allocations of resources and of the shadowExpand
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Intergenerational Risk-Sharing and Risk-Taking of a Pension Fund
By using their financial reserves efficiently, pension funds can smooth shocks on their asset returns, and can thus facilitate intergenerational risk-sharing. In addition to the primary benefit ofExpand
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The Comparative Statics of Changes in Risk Revisited
Abstract In this paper, we consider the problem of determining the conditions under which a change in risk increases the optimal value of a decision variable for all risk-averse agents. For a largeExpand
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