Asset Pricing as Ethics: Time, Risk, and Fairness

This text sheds new light on the technical aspects of economics, presenting asset pricing as a deeply rooted ethical discipline. The author analyzes how parameters such as the discount rate and risk premium determine the importance we assign to the well-being of future generations. Drawing on Rawls and the theories of Christian Gollier, the article examines the application of Ramsey's rule in the context of climate change and macroeconomic uncertainty. The reader will learn how the veil of ignorance helps establish equitable time prices and why the valuation of environmental goods requires consideration of the precautionary principle. This is an essential work for those seeking to connect mathematical financial models with social and ecological responsibility.