Download This PaperSustainability in a Risky World
28 Pages Posted: 30 Mar 2021
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Sustainability in a Risky World
Number of pages: 28
Posted: 30 Mar 2021
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Sustainability in a Risky World
NBER Working Paper No. w28899
Number of pages: 29
Posted: 07 Jun 2021
Last Revised: 20 Jul 2021
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Sustainability in a Risky World
CEPR Discussion Paper No. DP16219
Number of pages: 31
Posted: 14 Jul 2021
Date Written: March 30, 2021
Abstract
This paper studies the restrictions on consumption, portfolio choice, and social discounting implied by a sustainability constraint, that utility should not be expected to decline over time, in an economy with risky investment opportunities. The sustainability constraint does not distort portfolio choice and implies a consumption-wealth ratio and social discount rate that can be considerably higher than the riskless interest rate.
Keywords: Sustainability, social discounting, consumption-wealth ratio, rate of time preference
JEL Classification: G11, H43, Q01
Suggested Citation: Suggested Citation
Campbell, John Y. and Martin, Ian W. R., Sustainability in a Risky World (March 30, 2021). Available at SSRN: https://ssrn.com/abstract=3815370 or http://dx.doi.org/10.2139/ssrn.3815370
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