New paper on social discount rates and climate change

Glenn Rudebusch and I have written a paper that takes a macro-finance perspective of social discount rates. Our main point is that the secular decline in the equilibrium real interest rate has lowered all discount rates and boosted the present value of future damages from climate change.

The paper is available here.

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Michael D. Bauer
Financial Economist

My research areas are financial economics, monetary economics and time series econometrics.