Aggregate Social Discount Rate Derived from Individual Discount Rates

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Kenneth F. Reinschmidt;
  • Journal: Management Science,volume 48,issue 2 February,pages307-312
  • Related identifiers: doi: 10.1287/mnsc.48.2.307.259
  • Subject: Social Discount Rate, Public Sector Investment, Benefit-Cost Analysis

In 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 distri... View more
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