In Defence of Intertemporal Consistency. A Discussion of Craig Callender’s ‘The Normative Standard for Future Discounting’

Abstract

ABSTRACT While broadly in agreement with the conclusion that the exponentially discounted utility model (EDU) is not a universally valid rationality standard, I want to defend some intertemporal rationality criteria related to EDU, which Craig Callender might not share. My commentary explores the tension between these intuitions and Callender's arguments. In the first place, I show that many of the concerns that he raises are in fact compatible with intertemporal consistency (and sometimes even with EDU). Secondly, I rebut those arguments that directly challenge consistency. I conclude that while we disagree on the rationality of consistency, we can nevertheless agree on its non-universality and its limited justification of policy interventions.