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discount factor

   Also found in: Dictionary/thesaurus, Medical, Legal, Financial, Acronyms, Wikipedia 0.01 sec.
discount factor [′dis‚kau̇nt ‚fak·tər]
(petroleum engineering)
The ratio of the present worth of one or a series of future payments to the total undiscounted amount of such future payments. Also known as average discount factor; deferment factor; present-worth factor.


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In this text, Cheng (Chinese Academy of Science, China) and Tong (London School of Economics, UK) develop a new structural theory to evaluate asset pricing models which puts the stochastic discount factor (SDF) pricing model of recent years firmly on a mathematical foundation.
Section V presents discount factor tables and describes a supporting document for one of the standards.
Since applications with unequal discount factors [4, 5] are relatively rare and it is unclear how to solve them with model-free methods, we will only consider MDPs with several criteria each based on its own reward function, but using a common discount factor [gamma].
 
 
 
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