3 papers
q-fin.MF2023
Discounting the distant future: What do historical bond prices imply about the long term discount rate?
J. Doyne Farmer, John Geanakoplos, Matteo G. Richiardi +3
We present a thorough empirical study on real interest rates by also including risk aversion through the introduction of the market price of risk. With the view of complex systems…
q-fin.MF2019
Statistical analysis and stochastic interest rate modelling for valuing the future with implications in climate change mitigation
Josep Perelló, Miquel Montero, Jaume Masoliver +2
High future discounting rates favor inaction on present expending while lower rates advise for a more immediate political action. A possible approach to this key issue in global ec…
q-fin.GN2008
The virtues and vices of equilibrium and the future of financial economics
J. Doyne Farmer, John Geanakoplos
The use of equilibrium models in economics springs from the desire for parsimonious models of economic phenomena that take human reasoning into account. This approach has been the…