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Obtención de la tasa social de descuento a partir de la tasa de fallo de una distribución estadística: Aplicación empírica/Obtaining the social discount rate from the hazard rate of a statistical distribution: An empirical application

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Author Info
CRUZ RAMBAUD, SALVADOR () (Departamento de Dirección y Gestión de Empresas. Universidad de Almería La Cañada de San Urbano s/n, 04071 (Almería). Telf. +34 950 015 184- +34 950 015 817)
MUÑOZ TORRECILLAS, MARÍA JOSÉ () (Departamento de Dirección y Gestión de Empresas. Universidad de Almería La Cañada de San Urbano s/n, 04071 (Almería). Telf. +34 950 015 184- +34 950 015 817)

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Abstract

El objetivo de este artículo es la obtención de una tasa social de descuento apropiada para valorar proyectos de inversión a largo o muy largo plazo, como suelen ser muchos proyectos gubernamentales y/o medioambientales. La aproximación al problema se llevará a cabo a través de la tasa de fallo de los bienes en los que se va a invertir. En concreto, se ha elegido la inversión en bosques y el incendio forestal como fallo del sistema, considerando la función de distribución Weibull como la más adecuada para modelizar la evolución de la tasa de fallo del sistema. El enfoque de la tasa de fallo responde a la consideración del riesgo asociado a la espera de la recompensa (o vencimiento de los fl ujos netos correspondientes), riesgo que puede ser considerado como fallo del sistema, mortalidad de la población a la que va dirigida la inversión e incluso disminución de la utilidad marginal del ingreso. The purpose of this paper is to obtain an appropriate social discount rate to appraise long-term or very long-term investment projects, as environmental or government projects. The problem will be approached from the hazard rate of goods in which we are going to invest. Specifi cally, we have chosen forestation investment and forest fi re as system fail, using the Weibull distribution in order to modelize the evolution of the system hazard rate. The hazard rate approach considers the risk that waiting for a reward (or the maturity of cash-fl ows) implies. This risk can be considered as the fail of the system, the mortality of the population the project is intended for, or even the decrease of the marginal utility of income.

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Publisher Info
Article provided by Estudios de Economía Aplicada in its journal Estudios de Economía Aplicada.

Volume (Year): 25 (2007)
Issue (Month): (Abril)
Pages: 49-82
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Handle: RePEc:lrk:eeaart:25_1_3

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Related research
Keywords: Descuento social; tasa de fallo; inversiones a largo plazo/Social discount; hazard rate; long-term investments.;

Find related papers by JEL classification:
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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  1. E Kula, 1985. "An empirical investigation on the social time-preference rate for the United Kingdom," Environment and Planning A, Pion Ltd, London, vol. 17(2), pages 199-212, February. [Downloadable!] (restricted)
  2. Martin L. Weitzman, 2001. "Gamma Discounting," American Economic Review, American Economic Association, vol. 91(1), pages 260-271, March. [Downloadable!] (restricted)
    Other versions:
  3. Thaler, Richard, 1981. "Some empirical evidence on dynamic inconsistency," Economics Letters, Elsevier, vol. 8(3), pages 201-207. [Downloadable!] (restricted)
  4. Kula, Erhun, 1984. "Derivation of Social Time Preference Rates for the United States and Canada," The Quarterly Journal of Economics, MIT Press, vol. 99(4), pages 873-82, November. [Downloadable!] (restricted)
  5. Cropper, Maureen L & Aydede, Sema K & Portney, Paul R, 1992. "Rates of Time Preference for Saving Lives," American Economic Review, American Economic Association, vol. 82(2), pages 469-72, May. [Downloadable!] (restricted)
  6. Arad, N., 2000. "An Explanation of Hyperbolic Marginal Utility from Money," Papers 2000-25, Tel Aviv.
  7. Loewenstein, George & Prelec, Drazen, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 573-97, May. [Downloadable!] (restricted)
  8. Brent, Robert J, 1993. "Country Estimates of Social Discount Rates Based on Changes in Life Expectancies," Kyklos, Blackwell Publishing, vol. 46(3), pages 399-409.
  9. Azfar, Omar, 1999. "Rationalizing hyperbolic discounting," Journal of Economic Behavior & Organization, Elsevier, vol. 38(2), pages 245-252, February. [Downloadable!] (restricted)
  10. Harvey, Charles M., 1994. "The reasonableness of non-constant discounting," Journal of Public Economics, Elsevier, vol. 53(1), pages 31-51, January. [Downloadable!] (restricted)
  11. Quinet, E., 2000. "Evaluation methodologies of transportation projects in France," Transport Policy, Elsevier, vol. 7(1), pages 27-34, January. [Downloadable!] (restricted)
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