Sentences with phrase «lower discount rates»

This was driven largely by superior capital growth as a result of higher occupancy rates, lower discount rates and a lower level of capital expenditure in energy efficient buildings.

Debates over discounting are longstanding in climate analysis, but as my colleague Jerry Taylor wrote last year, economists who study climate change are inclined to choose lower discount rates because of the inter-generational transfers and long timescales associated with climate change.

, economists who study climate change are inclined to choose lower discount rates because of the inter-generational transfers and long timescales associated with climate change.

It should be «The social cost of carbon rises sharply for lower discount rates.»

The considerations that drive those lower discount rates are not dissimilar to the considerations that drive lower discount rates in other, non-climate contexts.

These statistics signify the strong uncertainty associated with the SCC estimates at lower discount rates and, therefore, their lack of reliability.

[13] Although assumptions regarding lower discount rates suggest higher estimates of the SCC than do higher discount rates, the associated standard deviations are, on average, also notably higher.

There is also the continued lack of certainty associated with lower discount rates quantified by their high average standard deviations, as was the case with the outdated Roe — Baker distribution.

I still believe it's entirely reasonable to expect this NAV discount to be eliminated in due course — as investors anticipate lower discount rates on policy valuations, as the average LE reduces & policy maturities accelerate, and as we see management repurchase shares and / or return capital.

If we had assumed lower discount rates in the past, we wouldn't have the problems we do now.

But low interest rates on bonds lead to lower discount rates, which leaves pension funds with greater liabilities.

Thus I say to the young; lobby for lower discount rates, that there might be more taxation in the short - run, and less in the long - run.

I have ignored reasons that might justify lower discount rates or higher GDP adjustments for China mainly because the purpose of this essay is to explain why the U.S. multiple is so much higher than China's, and of course these reasons exist, but I think whatever the correct ratio should be, there is no question that advanced economies always justify higher multiples than developing economies because they tend to be economically more diversified and politically more stable, and they usually have institutions, including clearer legal and regulatory frameworks, more sophisticated capital allocation processes, less rigid financial systems, and smaller state sectors (which make smooth adjustment, one of the most valuable and undervalued components of long - term growth, more likely).

However, headwinds in pension expense will hamper earnings growth in 2013, as a historically low discount rate at our May 31, 2012, measurement date will increase these costs by approximately $ 150 million.

Low discount rates suggest that asset valuations should not fall back to historical means.

The decline in GM's pension liability could be even more significant when considering the low discount rate, just 3.5 %, it uses to measure its projected benefit obligations.

When interest rates are already high, the central bank focuses on lowering the discount rate.

Frederick et al. (2002) found that individuals with high discount rates tend to make decisions based on their desire for immediate gratification, and individuals with low discount rates prefer to delay gratification to obtain a better reward in the future.

Given the squishiness of what the discount rate ought to be, management teams could say that once the market normalizes a low discount rate will prevail, and our models should reflect normalized, not panic conditions.

While investors can partially justify this on the basis of a lower discount rate, i.e. low interest rates, it is worth highlighting that even in the context of low rates, valuations are elevated.

Low discount rates suggest that asset valuations should not fall back to historical means.

I'm often asked why I don't lower my discount rate (increase my valuation) given lower risk free rates.

Lower interest rates should result in higher valuations due to a lower discount rate, etc..

Investors were cheered last week when the Federal Reserve lowered its target for the Federal Funds Rate by 50 basis points, and lowered the Discount Rate (the interest rate it charges on loans to the banking system) by 50 basis points as well.

And in the end, continued rate repression in the market may well demand a lower discount rate, which cd prove a nice offset to any potential LE disappointment.

At low discount rates, and low P / Es, the DDM says that value investors don't need much growth at all in order to buy good values.

By asset class, relatively low discount rates relative to swap or Treasury yields indicate complacency.

Rather than qualifying for the higher, posted rate, these buyers could qualify for the loan based on the much lower discounted rates, explained Calum Ross, a Toronto - based independent mortgage broker, who works with high net worth clients as a dually licensed wealth advisor (with his MBA) and mortgage broker.

If TLI (and / or the market) adopts a significantly lower discount rate in due course, we may see the share price trade at a significant premium, and / or a meaningful acceleration in NAV.

That year the Liability Hedge Portfolio rose in value, but the fund managers had to lower their discount rate by 0.30 %, which caused its future liabilities to increase.

Initially, the Fed lowered the discount rate.

They might well be richer in the long term if they used a lower discount rate, but they're more...

That is all that Greenspan and Bernanke ever did, to a first approximation, is lower the discount rate.

Raising or lowering the discount rate in a project does not affect the rate that would have caused it to break even.

The more certainty one has about the accuracy of the growth rate and the longevity of the business, the lower the discount rate.

Or viewed differently, investors make larger offers when there is a lower discount rate to estimate the present value of a future anticipated death benefit.

By selling some of your forthcoming monthly payments, they have a lower discount rate than payments that are further out in the future, which means you'll be able to get more money and still have access to future payments.

As a result, these low discount rates result in SCC probability distributions with equally likely (or unlikely) high and low estimates of the SCC.

The Stern Review has been criticized by more conservative mainstream economists, including William Nordhaus, for its ethical choices, which, it is claimed, place too much emphasis on the future as opposed to present - day values by adopting a much lower discount rate on future costs and benefits as compared to other, more standard economic treatments such as that of Nordhaus.

There may be good arguments for very low discount rates but that's of little value as it's totally impossible to estimate the sums to discounted far in the future.

«For policy to have any effect on steady - state outcomes, planners need to have a very low discount rate and a long time horizon.

In another departure from its own guidelines, the government's calculation uses an especially low discount rate, resulting in a high SCC and thus more «benefits» from regulations reducing carbon emissions.

The lower the discount rate, the more we must pay now and thus the higher the current SCC seems to be.

He draws a distinction between what he terms a «moralist» approach (which prefers a lower discount rate) and a «business» approach (which requires a higher discount rate):

Wind / solar power in developed nations like Germany and France is economically sound, simply due to the very low discount rates in those countries (discount rate has a very large impact on the LCOE of capital intensive technologies).

Such low discount rates as are used for justifying mitigation policies are not used by government and aid agencies for making choices between funding Health, Education, infrastructure etc..

Lesson 10.6 Enrichment: Uncertainty Lowers the Discount Rate.

Yet, when we estimate the damage costs of CO2 emissions, Sir Nicholas Stern, Ross Garnaut and Richard Tol use comparatively very low discount rates.

Quite on the contrary, our extensive exploration of uncertainty yielded a lower discount rate (form around 2070 onward) than existing proposals.

This lower discount rate translates into a considerable increase in the social cost of carbon emissions, and hence even greater impetus to mitigate climate change.