Hyperbolic Discounting and Resource Collapse.
This paper shows that the use of hyperbolic discounting in environmental regulation can have unfortunate consequences. In a three-period model we demonstrate that a planner who ‘naively’ employs hyperbolic discounting and fails to anticipate problems of dynamic inconsistency, can oversee a collapse...
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| Format: | Working paper |
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Department of Economics (University of Oxford)
2003
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