scholarly journals Projects with long time horizons: their economic appraisal and the discount rate

1995 ◽  
Vol 10 (2) ◽  
pp. 66-76 ◽  
Author(s):  
Ian Livingstone ◽  
Michael Tribe
Keyword(s):  
Discount Rate ◽  
Economic Appraisal ◽  
Time Horizons ◽  
Long Time

scholarly journals DOES A DISCOUNT RATE MEASURE THE COSTS OF CLIMATE CHANGE?

2017 ◽  
Vol 33 (3) ◽  
pp. 337-365 ◽  
Author(s):  
Christian Tarsney
Keyword(s):  
Discount Rate ◽  
Time Preference ◽  
Marginal Utility ◽  
Costs And Benefits ◽  
Social Discount Rate ◽  
Time Horizons ◽  
Rate Measure ◽  
Long Time ◽  
Diminishing Marginal Utility ◽  
Normative Considerations

Abstract:I argue that the use of a social discount rate to assess the consequences of climate policy is unhelpful and misleading. I consider two lines of justification for discounting: (i) ethical arguments for a ‘pure rate of time preference’ and (ii) economic arguments that take time as a proxy for economic growth and the diminishing marginal utility of consumption. In both cases I conclude that, given the long time horizons, distinctive uncertainties, and particular costs and benefits at stake in the climate context, discount rates are at best a poor proxy for the normative considerations they are meant to represent.

scholarly journals The decade after tomorrow: Estimation of discount rates from realistic temporal decisions over long time horizons

2021 ◽  
Vol 183 ◽  
pp. 158-174
Author(s):  
Patrick Lloyd-Smith ◽  
Wiktor Adamowicz ◽  
Alicia Entem ◽  
Eli P. Fenichel ◽  
Mani Rouhi Rad
Keyword(s):  
Discount Rates ◽  
Time Horizons ◽  
Long Time

scholarly journals Can Financial Engineering Cure Cancer?

2013 ◽  
Vol 103 (3) ◽  
pp. 406-411 ◽  
Author(s):  
David E Fagnan ◽  
Jose Maria Fernandez ◽  
Andrew W Lo ◽  
Roger M Stein
Keyword(s):  
Financial Engineering ◽  
Analytical Framework ◽  
Capital Requirements ◽  
Debt Financing ◽  
Investment Projects ◽  
Time Horizons ◽  
Long Time ◽  
Private And Public ◽  
Public Equity ◽  
Highly Correlated

Traditional financing sources such as private and public equity may not be ideal for investment projects with low probabilities of success, long time horizons, and large capital requirements. Nevertheless, such projects, if not too highly correlated, may yield attractive risk-adjusted returns when combined into a single portfolio. Such “megafund” portfolios may be too large to finance through private or public equity alone. But with sufficient diversification and risk analytics, debt financing via securitization may be feasible. Credit enhancements (i.e., derivatives and government guarantees) can also improve megafund economics. We present an analytical framework and illustrative empirical examples involving cancer research.

Using limiting factors analysis to overcome the problem of long time horizons

2009 ◽  
Vol 2009 (122) ◽  
pp. 19-29 ◽  
Author(s):  
Raymond Gullison ◽  
Jared Hardner
Keyword(s):  
Limiting Factors ◽  
Factors Analysis ◽  
Time Horizons ◽  
Long Time

scholarly journals Generic Drugs Not as Safe as FDA Wants You to Believe

2019 ◽  
Vol 54 (3) ◽  
pp. 283-286 ◽  
Author(s):  
C. Michael White
Keyword(s):  
United States ◽  
Prescription Drugs ◽  
Generic Drugs ◽  
The United States ◽  
Drug Supply ◽  
Active Pharmaceutical Ingredients ◽  
Pharmaceutical Ingredients ◽  
Time Horizons ◽  
Long Time ◽  
Generic Products

Food and Drug Administration (FDA) rules for the production of prescription drugs are very rigorous and, if followed, guarantees a safe drug supply. For many years, foreign manufacturers have produced substandard generic products and active pharmaceutical ingredients and shipped them into the United States. If the FDA had inspected them with the same rigor as they do domestic manufacturers, they would have found many of these egregious deviations from ethical manufacturing much earlier. Although the FDA is finally stepping up the number of inspections, their current processes still rely on preannounced inspections with long time horizons, so quality issues can be temporarily corrected and documents altered or destroyed.

Global Warming: More Common Than Tragic

2004 ◽  
Vol 18 (1) ◽  
pp. 41-46 ◽  
Author(s):  
Elizabeth R. DeSombre
Keyword(s):  
Climate Change ◽  
Global Warming ◽  
International Cooperation ◽  
Kyoto Protocol ◽  
Tragedy Of The Commons ◽  
The United States ◽  
Time Horizons ◽  
Long Time ◽  
The Commons ◽  
Process Work

Global warming is indeed a difficult international environmental problem to address: it has tragedy of the commons characteristics, and problems of time horizons and uncertainty. But previous efforts at international cooperation on other environmental issues such as ozone depletion suggest that international cooperation should be possible–though difficult–on climate change. Cooperation on issues that involve long time horizons suggests that the present generation is not calculating utility quite so narrowly as game theorists posit. Experience also suggests that successful cooperation on climate change will start with measures so small as to seem inconsequential, but will set in place an institutional and scientific process that will ultimately result in much more significant cooperative efforts. Rather than representing a tragedy, the Kyoto Protocol (or something much like it) could represent the beginnings of a process in which current generations take the first steps at collective action that dramatically improve the lives of future generations. Those who are concerned about the weakness of the Kyoto Protocol should first focus on persuading the United States to join-since this is the best way to let the process work and avoid a tragedy of the commons.

Customer Matrix with Different Time Horizons Applied to Electrodischarge Machines

2013 ◽  
Vol 371 ◽  
pp. 220-224
Author(s):  
Daniela Ghiculescu ◽  
Niculae Marinescu ◽  
Daniel Ghiculescu ◽  
Claudiu Pirnău
Keyword(s):  
Time Variable ◽  
Competitive Environment ◽  
Sustainable Competitive Advantage ◽  
Forecast Method ◽  
Second Stage ◽  
Time Horizons ◽  
Perceived Price ◽  
Long Time ◽  
Tree Method

A very effective method to evaluate the products is the Customer Matrix (CM) that uses two coordinates: Perceived Used Value (PUV) and Perceived Price. Our researches extend this basic concept by adding the time variable, creating CM with different time horizons that assures a better understanding of competitive environment. In the first stage, the Customer Matrix is associated with a forecast method. The relevance tree method was used to predict the most probable evolution paths of electrodischarge machines. In the second stage, the CM with different time horizons is constructed, considering products evaluation for short, medium and long time. Finally, a strategy is conceived for an organization that attempts to ameliorate and consolidate its long term position against the main competitors, aiming at obtaining sustainable competitive advantage.

Accounting for real exchange rate changes at long time horizons

2015 ◽  
Vol 46 ◽  
pp. 264-277
Author(s):  
Lein-Lein Chen ◽  
Seungmook Choi ◽  
John Devereux
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Time Horizons ◽  
Long Time ◽  
Exchange Rate Changes

scholarly journals Time preferences are reliable across time-horizons and verbal vs. experiential tasks

2018 ◽  
Author(s):  
Evgeniya Lukinova ◽  
Yuyue Wang ◽  
Steven F. Lehrer ◽  
Jeffrey C. Erlich
Keyword(s):  
Delay Discounting ◽  
Time Preference ◽  
Animal Studies ◽  
Time Preferences ◽  
Biological Mechanisms ◽  
Discount Factors ◽  
Time Horizons ◽  
Long Time ◽  
Experiential Tasks ◽  
Human Animal

AbstractIndividual differences in delay-discounting correlate with important real world outcomes, e.g. education, income, drug use, & criminality. As such, delay-discounting has been extensively studied by economists, psychologists and neuroscientists to reveal its behavioral and biological mechanisms in both human and non-human animal models. However, two major methodological differences hinder comparing results across species. Human studies present long time-horizon options verbally, whereas animal studies employ experiential cues and short delays. To bridge these divides, we developed a novel language-free experiential task inspired by animal decision-making studies. We find that subjects’ time-preferences are reliable across both verbal/experiential differences and also second/day differences. When we examined whether discount factors shifted or scaled across the tasks, we found a surprisingly strong effect of temporal context. Taken together, this indicates that subjects have a stable, but context-dependent, time-preference that can be reliably assessed using different methods; thereby, providing a foundation to bridge studies of time-preferences across species.

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