Barkley originally wrote: >>The new wave coming out of these discussions
has been hyperbolic discounting where a high discount
rate is used to discount the near term future, but a lower and lower rate
approaching zero is used to discount the far distant future.<<
I responded:>In practice, of course, long-term interest rates are usually
higher than short-term ones. Capitalism doesn't follow ethical standards.<
Barkley responded:
>Ah, but that is because the risk premium is higher, at least supposedly.
Right, but the point is that capitalism works according to what's risky for
individuals (at least those with money to speculate with) rather than
according to what's risky for the world, including the natural environment.
[was: Re: [PEN-L:8604] Re: Re: Re: Re: Re: Re: Re: Re: Re: [Fwd: Re: query:
Frank Ramsey] ]
Jim Devine [EMAIL PROTECTED] & http://bellarmine.lmu.edu/~jdevine
