Description, Prescription and the Choice of Discount Rates
نویسنده
چکیده
Background: Discounting Approaches Discounting is generally defined as the process of comparing the values of costs and benefits that occur at different times. Approaches to choosing discount rates are generally placed into two categories. The descriptive approach matches discount rates to descriptions of how society discounts taken from monetary interest rates observed in financial markets. The prescriptive approach derives discount rates from fundamental ethical views, even if the resulting rates do not match market rates.
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