Comment on Burgess and Zerbe: On Bank Market Power and the Social Discount Rate

Johansson Per-Olov and Kriström Bengt
Additional contact information
Johansson Per-Olov: Stockholm School of Economics
Kriström Bengt: Center for Environmental and Resource Economics, SLU and Umeå University

Journal of Benefit-Cost Analysis, 2011, vol. 2, issue 3, 6

Abstract: In this note we discuss how to estimate the social discount rate when banks have market power. Some data from Sweden are used to illustrate the approach. If other investments are crowded out, the implied social discount rate is around 7 percent, i.e. more or less equal to the one suggested by Burgess and Zerbe (2011) for the U.S. but similar to those often used in the EU (3-4 percent) if private consumption is crowded out by the considered investment.

Keywords: social discount rate; market power; social opportunity cost of capital (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.2202/2152-2812.1097 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:jbcacn:v:2:y:2011:i:3:n:6

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/jbca/html

DOI: 10.2202/2152-2812.1097

Access Statistics for this article

Journal of Benefit-Cost Analysis is currently edited by Glenn C. Blomquist and William H. Hoy

More articles in Journal of Benefit-Cost Analysis from De Gruyter
Bibliographic data for series maintained by Peter Golla ().