Paretian Intergenerational Discounting

45 Pages Posted: 24 Aug 2005

See all articles by Dexter Samida

Dexter Samida

U.S. Court of Appeals for the 7th Circuit

David A. Weisbach

University of Chicago - Law School; Center for Robust Decisionmaking on Climate & Energy Policy (RDCEP)

Date Written: August 2005

Abstract

This paper argues that discounting costs and benefits of projects for the opportunity costs of capital Pareto dominates decision criteria that do not discount. It considers and rejects several objections to the Pareto dominance argument, including the problem of making compensating transfers for the costs and benefits of projects and whether taking opportunity costs into account is different than discounting. It also argues that discounting future costs and benefits of projects does not under-value future generations.

Suggested Citation

Samida, Dexter and Weisbach, David, Paretian Intergenerational Discounting (August 2005). U Chicago Law & Economics, Olin Working Paper No. 255. Available at SSRN: https://ssrn.com/abstract=786546 or http://dx.doi.org/10.2139/ssrn.786546

Dexter Samida

U.S. Court of Appeals for the 7th Circuit ( email )

219 S. Dearborn Street
Chicago, IL 60604
United States

David Weisbach (Contact Author)

University of Chicago - Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States
773-702-3342 (Phone)
773-702-0730 (Fax)

Center for Robust Decisionmaking on Climate & Energy Policy (RDCEP) ( email )

5735 S. Ellis Street
Chicago, IL 60637
United States

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