Miniatura

Fitxers

728232.pdf (816.79 KB)

Tipus de document

Article

Versió

Versió acceptada

Data de publicació

2022-11-15

Tots els drets reservats

Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/196317

Valuing the distant future under stochastic resettings: the effect on discounting

Títol de la revista

Autors

Director/Tutor

ISSN de la revista

Títol del volum

Recurs relacionat

https://doi.org/10.1088/1751-8121/ac9f8a

Resum

We investigate the effects of resetting mechanisms when valuing the future in economic terms through the discount function. Discounting is specially significant in addressing environmental problems and in evaluating the sense of urgency to act today to prevent or mitigate future losses due to climate change effects and other disasters. Poissonian resetting events can be seen in this context as a way to intervene the market, it modifies the discount function and it can facilitate a specific climate policy. We here obtain the exact expression of the discount function in Laplace space and attain the expression of the long-run interest rate, a crucial value in environmental economics and climate policy. Both quantities are obtained without assuming any model for the evolution of the market. Model specific results are achieved for diffusion processes and in particular for the Ornstein-Uhlenbeck and Feller processes. The effect of Poissonian resetting events is non-trivial in these cases. The overall lesson we can learn from the obtained results is that effective policies to favor climate action should be resolute and frequent enough in time: the frequency of the interventions is critical for actually observing the desired consequences in the long-run interest rate.

Matèries

Física matemàtica, Física estadística, Canvi climàtic

Matèries (anglès)

Mathematical physics, Statistical physics, Climatic change

Citació

Col·leccions

Articles publicats en revistes (Física de la Matèria Condensada)

Citació

MONTERO TORRALBO, Miquel, PERELLÓ, Josep, MASOLIVER, Jaume. Valuing the distant future under stochastic resettings: the effect on discounting. _Journal of Physics A: Mathematical and Theoretical_. 2022. Vol. 55, núm. 46, pàgs. 1-24. [consulta: 20 de gener de 2026]. ISSN: 1751-8113. [Disponible a: https://hdl.handle.net/2445/196317]

Exportar metadades

JSON - METS

Compartir registre