Discount rates for long-term projects: the cost of capital and social discount rate compared
نویسندگان
چکیده
منابع مشابه
Discount rates for long - term projects
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متن کاملExplorer Discount rates for long - term projects
General rights Copyright for the publications made accessible via the Edinburgh Research Explorer is retained by the author(s) and / or other copyright owners and it is a condition of accessing these publications that users recognise and abide by the legal requirements associated with these rights. Take down policy The University of Edinburgh has made every reasonable effort to ensure that Edin...
متن کاملThe Long-Term Discount Rate∗
We develop an expression for the long-term discount rate in an economy in which a representative consumer has access to both a risk-free and a risky production technology. Even when the risk-free sector is very small, and with probability one becomes a negligible fraction of the economy in the long run, interest rates are determined differently than in a single-sector economy. As in a single-ri...
متن کاملThe Social Discount Rate
What discount rate should be applied to social investments? It is standard to use the market interest rate, thereby respecting private preferences. We show that application of this “revealed preference” criterion rests on faith, not logic. It is justified only if preferences over all choices, including past choices, are time invariant. The conditions for this to be true are stringent. Under mor...
متن کاملInequality aversion, social discount, and time discount rates
Purpose We conduct a hypothetical dictator game with social distance and time delays using conjoint analysis. Design / methodology / approach Responses from 1,347 Japanese adults are collected through an online survey, and their responses are analyzed using a random parameter logit model. Findings Social preference for the present income of a stranger equals social preference for the income of ...
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ژورنال
عنوان ژورنال: The European Journal of Finance
سال: 2015
ISSN: 1351-847X,1466-4364
DOI: 10.1080/1351847x.2015.1029591