A note on discounting and the social time preference rate

John Creedy

Australian Journal of Labour Economics (AJLE), 2008, vol. 11, issue 3, 249-255

Abstract: This paper examines the discounting of money values in social evaluations using a social time preference rate (defined as the sum of a pure time preference rate and the product of the elasticity of marginal valuation and a growth rate). It is shown that this procedure can give a different ranking of alternative streams compared with the direct use of the pure time preference rate to discount ‘social welfare’ in each period (where social welfare is a usually isoelastic - function of money values).

Keywords: Allocative Efficiency; Cost-Benefit Analysis Intertemporal Choice and Growth: General, General Welfare (search for similar items in EconPapers)
JEL-codes: D61 D90 I31 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://ftprepec.drivehq.com/ozl/journl/downloads/AJLE113creedy.pdf (application/pdf)

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:ozl:journl:v:11:y:2008:i:3:p:249-255

Access Statistics for this article

More articles in Australian Journal of Labour Economics (AJLE) from Bankwest Curtin Economics Centre (BCEC), Curtin Business School Contact information at EDIRC.
Bibliographic data for series maintained by Sandie Rawnsley ().