• Corpus ID: 17994566

Gamma Discounting

  title={Gamma Discounting},
  author={Richard. Schmalensee and Myron S. Scholes and Amartya Sen and Robert Siiiler and John B. Shoven and Robert Solow and J. E. Stiglitz and Lawrence Summers and James Tobin and W. Kip Viscusi},
By incorporating the probability distribution directly into the analysis, this paper proposes a new theoretical approach to resolving the perennial dilemma of being uncertain about what discount rate to use in cost-benefit analysis. A numerical example is constructed from the results of a survey based on the opinions of 2,160 economists. The main finding is that even if every individual believes in a constant discount rate, the wide spread of opinion on what it should be makes the effective… 
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