Country Estimates of Social Discount Rates Based on Changes in Life Expectancies
KYKLOS, Volume 46, Issue 3, August 1993, Pages 399-409
Posted: 8 Oct 2018
Date Written: 1993
Time acts as the numeraire in life safety activities via it being a fixed endowment that is received by everyone in a generation in (roughly) equal amounts. A decision that requires using up time in a current preventative activity can only be justified if it provides more future time, in terms of extending life expectancy. Since this future time needs to be disconnected to make it commensurate with current time, this paper addresses the issue of how to value time today relative to time in the future.
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