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Aggregate Social Discount Rate Derived from Individual Discount Rates
Management Science, 2002In the economic evaluation of large public-sector projects, an aggregate social discount rate may be used in present worth comparison of alternatives. This paper uses the assumptions that individual discount rates are constant over time and approximately Normally distributed across the affected population, with mean μ and variance σ2, to derive an ...
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A social time preference methodology derived from Feldstein (1965) is applied to calculate social discount rates across 167 countries and across time from 2005-2050 for a country case (Brazil). This attempt seeks to compute comparable figures from a homogeneous dataset and provides a ready-to-use framework for computing the social discount rate. Social
Joice Valentim, Mauricio Prado
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