3. Extending the Ramsey Rule to an Uncertain Economic Growth

2012 ◽  
pp. 41-58
Keyword(s):  
Author(s):  
Christian Gollier

This chapter considers the prospect of uncertainty in planning for the future. In fact, it is commonly accepted that individuals are ready to sacrifice more in the present for the future when this future becomes more uncertain. Keynes was the first to mention this idea by pointing out the precautionary motive for saving. What is desirable at the individual level is also desirable at the collective one. Thus the chapter argues that a society that wants to reinforce the incentive to invest for the future because of its uncertain nature should select a smaller discount rate to evaluate the set of all possible investment projects.


2016 ◽  
Vol 06 (02) ◽  
pp. 224-235 ◽  
Author(s):  
Morio Kuninori ◽  
Masayuki Otaki

2017 ◽  
Vol 48 (1) ◽  
pp. 40-46 ◽  
Author(s):  
Jolanda Jetten ◽  
Rachel Ryan ◽  
Frank Mols

Abstract. What narrative is deemed most compelling to justify anti-immigrant sentiments when a country’s economy is not a cause for concern? We predicted that flourishing economies constrain the viability of realistic threat arguments. We found support for this prediction in an experiment in which participants were asked to take on the role of speechwriter for a leader with an anti-immigrant message (N = 75). As predicted, a greater percentage of realistic threat arguments and fewer symbolic threat arguments were generated in a condition in which the economy was expected to decline than when it was expected to grow or a baseline condition. Perhaps more interesting, in the economic growth condition, the percentage realistic entitlements and symbolic threat arguments generated were higher than when the economy was declining. We conclude that threat narratives to provide a legitimizing discourse for anti-immigrant sentiments are tailored to the economic context.


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