Rare Disasters, Tail-Hedged Investments, and Risk-Adjusted Discount Rates
NBER Working Paper No. 18496
---- Acknowledgements -----
Without necessarily tying them to the contents of this paper, I am grateful to Bard Halsted, Ian Martin, and Nicholas Stern for useful critical comments. I am especially obliged to interactions with Christian Gollier, who, while having his own views on the subject, has emphasized early on (and well before me) the importance of understanding better the term structure of risk-adjusted discount rates for real investment projects. I also acknowledge stimulating discussions of this subject with Robert Litterman. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.