Deriving values of the social rate of time preference

Chris Parker ()
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Chris Parker: The Treasury, https://treasury.govt.nz/

Treasury Working Paper Series from New Zealand Treasury

Abstract: This report estimates the ‘social rate of time preference’ (SRTP) for New Zealand public policy appraisal using a Ramsey equation. It uses the Weitzman (1998) method to derive a declining discount rate schedule of 2% (real) for years 1–30, 1.5% for years 31–100, and 1% for years 101 on. The report does not compare and contrast social discount rate methods and how to use them in practice.

Keywords: Discounting; social discount rate; time preference, Government (search for similar items in EconPapers)
JEL-codes: H43 H50 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2025-01
New Economics Papers: this item is included in nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:nzt:nztwps:25/01

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