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Musings on the Social Discount Rate [PDF]

open access: possibleJournal of Benefit-Cost Analysis, 2015
This paper is mainly concerned with weighted-average measures of the social discount rate, where the components of the average are the marginal productivity of investment (measured by its gross-of-tax rate of return), and the marginal rate of time preference (measured by the net-of-tax yield of capital).
Arnold C. Harberger, Glenn P. Jenkins
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The Social Discount Rate

Canadian Journal of Program Evaluation, 1992
Abstract: Recently the discount rate recommended by Treasury Board Canada for use in program evaluations and project assessments has been challenged. This article reviews the theory and evidence supporting various estimates of the Canadian discount rate, and includes a comparison of rates used by the U.S. government and the World Bank. The article was
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Decomposing the social discount rate

2010
Recent modelling of the costs and benefits of climate change has renewed debate surrounding assumptions regarding the social discount rate in analysing the impacts of environmental change. Previous literature segments the social discount rate into being influenced by two key factors; the rate of pure time preference and the elasticity of marginal ...
Scarborough, Helen, Scarborough, Helen
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Intergenerational justice and the social discount rate

Theory and Decision, 1974
This paper applies the Harsanyi social welfare function to the problem of determining the social discount rate. It thus views the social discount question as one of justice between generations under conditions of individual uncertainty over position, rather than as one generation's paternalism or altruism for the next generation.
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A social discount rate for France

Applied Economics Letters, 2004
Each of the member countries of the European Union should, ideally, employ the same approach to measuring a discount rate for application in the appraisal of social projects. This, however, is far from the case! The German rate is based on financial market data, the British measure reflects social time preference and the French rate is usually based on
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A social discount rate for Italy

Applied Economics Letters, 2007
Because of the budgetary constraints imposed by the Stability and Growth Pact, the need for cost and benefit evaluation of public investment has become increasingly relevant. In a cost-benefit analysis framework, the definition of the social discount rate is key to the selection of projects and programmes on the basis of their socio-economic return. To
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The Social Rate of Discount

1971
Whether the NPV, IRR or TV approach is adopted, a rate of discount (or rate of compound in the TV case) is required. There is a presumption that all benefits and costs, regardless of their nature, are to be discounted at the same rate, and that this rate is constant over time.
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Time: The Social Discount Rate

2003
Abstract The approach adopted in Chapter 9 is quite general, but in the interests of keeping matters comparatively simple, it was developed in detail in a static setting. A project”s life usually stretches over many years, however, so that two problems must be dealt with.
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