Stefano Giglio, Matteo Maggiori, Johannes Stroebel, 21 June 2014

Long-run discount rates have big implications for fiscal and climate-change policies. This column estimates a discount rate for very long-run housing cash flows of 2.6%. This suggests that people are more willing than previously thought to invest today for the benefit of future generations, particularly if the benefits occur with certainty.


CEPR Policy Research