Discount factor


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Discount factor

Present value of $1 received at a stated future date.
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Thus, higher current earnings lower the risk of default by making the expected value of the random discount factor lower.
Motivated by the above observations, in this paper, we shall focus on the problem of strategic stability of cooperative solutions in ISGs and present sufficient conditions in terms of discount factors and prove that Nash or strong Nash equilibria exist in such games.
The steady-state discount factor, p, is set to 0.9957, which equals the average ratio of the GDP implicit price deflator inflation rate to the 3-month T-bill rate.
Fiscal limits are substantially lower in emerging market economies than in advanced economies due to the lower discount factor. Regardless of productivity level, the probability of default for all four emerging market economies would be 1 at a debt level of 190 percent of GDP; in Japan and the United States, the probability of default would be essentially zero at the same debt level.
Then, let [delta], 0 < [delta] [less than or equal to] 1, refer to the discount factor, common to the three agents.
Figure 3 shows the scheme's performance with respect to various values for the discount factor [gamma] in (2).
The dependent variable: The parent in the tough love model of Bhatt and Ogaki (39) endogenously evaluates the child's time preferences, i.e., the discount factor. We measure tough love behavior of parents towards young children using the following hypothetical question in the survey.
The selection of appropriate value of discount factor make sure the future reward.
As one can see from (4) and (5) both the value of the risk-free rate and the size of the risk premium depend on four parameters: discount factor ([beta]), relative risk aversion ([alpha]) and possible rates of growth of consumption ([g.sub.1] and [g.sub.2]).
3 shows the transmit power comparison between the proposed DDCPC algorithm under different discount factor r and DCPC algorithm.
"The LNG proposition is still a few years out, so it's harder to secure the reserves today because of the discount factor. If you have to buy the company today and you can't export the product for a number of years, it's more difficult to come to a value proposition."China Oil and Gas, listed on the Hong Kong Stock Exchange, is scooping up a company that produced 4,244 barrels of oil equivalent a day in the first quarter of this year.
It is assumed that the subjective discount factor [delta] is sufficiently low relative to expected real GDP growth so that [[psi].sub.0] [greater than or equal to] 0.