Using the stated preference method for the calculation of social discount rate

Andrea Tabi ()
Additional contact information
Andrea Tabi: Corvinus University of Budapest, Department of Environmental Economics and Technology, Budapest, Hungary

Society and Economy, 2013, vol. 35, issue 2, 167-186

Abstract: The aim of this paper is to build the stated preference method into the social discount rate methodology. The first part of the paper presents the results of a survey about stated time preferences through pair-choice decision situations for various topics and time horizons. It is assumed that stated time preferences differ from calculated time preferences and that the extent of stated rates depends on the time period, and on how much respondents are financially and emotionally involved in the transactions. A significant question remains: how can the gap between the calculation and the results of surveys be resolved, and how can the real time preferences of individuals be interpreted using a social time preference rate. The second part of the paper estimates the social time preference rate for Hungary using the results of the survey, while paying special attention to the pure time preference component. The results suggest that the current method of calculation of the pure time preference rate does not reflect the real attitudes of individuals towards future generations.

Keywords: social discount rate; stated preferences; revealed preferences; cost-benefit analysis (search for similar items in EconPapers)
JEL-codes: D90 D91 (search for similar items in EconPapers)
Date: 2013
Note: The research described herein was financed by the following grant: OTKA105228.
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.akademiai.com/content/c763m47330319377/fulltext.pdf (application/pdf)
subscription

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aka:soceco:v:35:y:2013:i:2:p:167-186

Ordering information: This journal article can be ordered from
Akadémiai Kiadó Zrt., P. O. Box 245, H-1519 Budapest, Hungary
https://akjournals.com/

Access Statistics for this article

Society and Economy is currently edited by Szent-Iványi, Balázs

More articles in Society and Economy from Akadémiai Kiadó, Hungary
Bibliographic data for series maintained by Kriston, Orsolya ().