The Cross-Sectional Implications of the Social Discount Rate

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The Cross-Sectional Implications of the Social Discount Rate

Maya Eden

Brandeis University

Maya Eden discusses two normative questions: (1) how should policymakers approach tradeoffs that involve different age groups, and (2) at what rate should policymakers discount the consumption of future generations? finding that these two questions are equivalent: caring more about the future means caring less about the elderly.

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The Cross-Sectional Implications of the Social Discount Rate