Monday, June 22, 2015

Hobbes Understood Why It May Be Rational in Unstable States to Heavily Discount the Future

"In [the war of all against all], there is no place for industry; because the fruit thereof is uncertain."
- Thomas Hobbes, Leviathan, Chapter XIII, "Of the Natural Condition of Mankind as Concerning Their Felicity and Misery"

More on the rationality of future discount rates in Japan and Somalia here.

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