The long-term discount rate taking into account production.

Summary The thesis studies the impact of heterogeneous beliefs on the characteristics of equilibrium economies composed of irrational agents. In the first part, we analyze an equilibrium economy composed of two agents, one optimistic and the other pessimistic, investing in an unlimited supply production and a net zero supply bond. The optimal investments of the optimist (pessimist) in production and in the bond are respectively higher (low) and lower (high) than in the rational case. The risk-free rate is an average of the homogeneous rates of single-agent economies, weighted by the shares of total wealth that each agent holds. The rate, which is pro-cyclical, fluctuates between the rate of the optimist (upper bound) and the pessimist (lower bound). The fluctuations of the rate and the share of total wealth invested in the bond increase with increasing divergence of beliefs. A near-zero wealth agent has the largest impact on the characteristics. In the second part, we study an equilibrium economy composed of agents with subjective and heterogeneous beliefs. The agents, individually irrational but collectively rational, share an endowment generated by two sources of risk. Risk premiums and the risk-free rate are averages of their levels analogous to those in one-agent economies, weighted by each agent's share of the endowment. They are on average equal to their rational values and have a pro- or counter-cyclical behavior defined by beliefs. Greater divergence in beliefs creates greater uncertainty and volatility in asset prices.