Coase-Sandor Working Paper Series in Law and Economics
Publication Date
2005
Publication Title
Law & Economics Working Papers
Abstract
This paper argues that discounting costs and benefits of projects for the opportunity costs of capital Pareto dominates decision criteria that do not discount. It considers and rejects several objections to the Pareto dominance argument, including the problem of making compensating transfers for the costs and benefits of projects and whether taking opportunity costs into account is different than discounting. It also argues that discounting future costs and benefits of projects does not under-value future generations.
Number
255
Recommended Citation
David A. Weisbach & Dexter Samida, "Paretian Intergenerational Discounting" (John M. Olin Program in Law and Economics Working Paper No. 255, 2005).
Additional Information
Chicago Unbound includes both works in progress and final versions of articles. Please be aware that a more recent version of this article may be available on Chicago Unbound, SSRN or elsewhere.