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Suppose the Ramsey equation did not just include growth but also included (i) an increasing preference over time for public goods such as the environment
Suppose the Ramsey equation did not just include growth but also included (i) an increasing preference over time for public goods such as the environment and (ii) increasing knowledge over time about the benefits of a healthy environment, how such an expanded Ramsey equation might alter the debate about discounting long-term environmental investments. (Hint: Begin with the effects on the elasticity of marginal utility of consumption.)
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