Based on research by Newell and Pizer, the text suggests the two following time-declining rate schedules, the first based on the social marginal rate of time preference and the second based on the optimal growth rate model;
|
Year |
pz |
px |
|
0 - 50 |
1.5 percent |
3.5 percent |
|
50-100 |
1.0 percent |
2.5 percent |
|
100-200 |
0.5 percent |
1.5 percent |
|
200-300 |
0.0 percent |
0.5 percent |
|
Over 300 |
0.0 percent |
0.0 percent |