A time preference measure of the social discount rate for the UK

Abstract

In this study the social discount rate for the UK is estimated, the result compared with the Treasury approved rate and the main associated policy implications considered. A case is argued for reducing the official discount rate in appraisals involving all long-term social projects. The estimate of the elasticity of the marginal utility of consumption, an important component of the discount rate, is supported by plausible and statistically valid regression results. The need for further work relating to other major european countries is identified so that discount rate comparisons can be made on a consistent basis.

Declining discount rates: Economic justifications and implications for long-run policy

“…3 The classic source for estimates of the elasticity of intertemporal substitution is Stern (1977). Recent reviews include Cowell and Gardiner (1999), Pearce and Ulph (1999), and Evans and Sezer (2002).…”

A social discount rate for Turkey

“…A number of studies such as Kula (1984 and, Evans and Sezer (2002), Evans (2005), and Percoco (2008) have adopted this approach; ii) Specifying a benchmark financial rate approach which is based on the long-term treasury interest rates. This method is adopted by the US Office of Management and Budget.…”

Food Scares in an Uncertain World

“…Period 1 is taken to be the second quarter of 1996 while period 2 is its fourth quarter. The discount factor for half a year is set to , which is in line with the estimates for the UK during the time period considered in our simulation (Evans and Sezer ). Consumption is measured by the total UK usage of beef and veal (DEFRA ).…”