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A time preference measure of the social discount rate for Iran

Author

Listed:
  • Arian Daneshmand

    (Allameh Tabataba’i University)

  • Esfandiar Jahangard

    (Allameh Tabataba’i University)

  • Mahnoush Abdollah-Milani

    (Allameh Tabataba’i University)

Abstract

Public sector projects in Iran are inefficiently carried out for reasons of mismanagement and poor prioritization. This problem may arise from the lack of a generally accepted social discount rate for project appraisal. The value of the social discount rate can have implications for resource allocations. The aim of this paper is to estimate the appropriate value of a social discount rate for Iran using the social time preference rate approach. The overall result indicates that the social discount rate for Iran is 5.8%.

Suggested Citation

  • Arian Daneshmand & Esfandiar Jahangard & Mahnoush Abdollah-Milani, 2018. "A time preference measure of the social discount rate for Iran," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-10, December.
    • Handle: RePEc:spr:jecstr:v:7:y:2018:i:1:d:10.1186_s40008-018-0127-x
    DOI: 10.1186/s40008-018-0127-x
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    References listed on IDEAS

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    More about this item

    Keywords

    Social discount rate; Social time preference rate; Project appraisal; ARDL; Iran;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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