 Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiaries (Dyskontowanie inwestycji miedzypokoleniowych: indywidualne stopy dyskontowe dla bliskich i odleglych beneficjentow projektu)Monika Foltyn-Zarychta ()
Problemy Zarzadzania, 2018, vol. 16, issue 74, 96-115 Abstract: The paper aims to diagnose whether it is justified in investment appraisal to apply a separate treatment (in terms of the value of the discount rate) for close-in-time versus distant-in-time project effects as well as for effects applying to close-in-space versus distant-in-space beneficiaries. The analysis rests on a survey asking Polish citizens to state their indifference points between lives saved now and in the future (with delays from 10 to 150 years to capture temporal distance) for two separate projects: saving lives in Poland (geographically close) and in Latvia (geographically remote). The findings suggest that while time distance can be perceived as a rationale to apply separate (lower) DRs which increase the weight of time-distant impacts in project’s NPV, outcomes distant in space should be treated as equally important to geographically close impacts, thus extending the analysis beyond national borders. Keywords: discount rate; intergenerational decisions; other-regarding behaviour; contingent valuation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sgm:pzwzuw:v:16:i:74:y:2018:p:96-115 Access Statistics for this article More articles in Problemy Zarzadzania from University of Warsaw, Faculty of Management Contact information at EDIRC. |
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