The Journal of Business, Vol. 79, No. 2 (March 2006), pp. 941-961 (21 pages) In this paper, we construct a new variance bound on any stochastic discount factor (SDF) of the form \documentclass{aastex} ...

That is the premise on which temporal discounting, a major tool in economic theory, is based on. If we want to compare present and future payoffs, we must account for the fact that we tend to value ...