IDEAS home Printed from https://ideas.repec.org/a/aka/soceco/v35y2013i2p167-186.html
   My bibliography  Save this article

Using the stated preference method for the calculation of social discount rate

Author

Listed:
  • Andrea Tabi

    () (Corvinus University of Budapest, Department of Environmental Economics and Technology, Budapest, Hungary)

Abstract

The aim of this paper is to build the stated preference method into the social discount rate methodology. The first part of the paper presents the results of a survey about stated time preferences through pair-choice decision situations for various topics and time horizons. It is assumed that stated time preferences differ from calculated time preferences and that the extent of stated rates depends on the time period, and on how much respondents are financially and emotionally involved in the transactions. A significant question remains: how can the gap between the calculation and the results of surveys be resolved, and how can the real time preferences of individuals be interpreted using a social time preference rate. The second part of the paper estimates the social time preference rate for Hungary using the results of the survey, while paying special attention to the pure time preference component. The results suggest that the current method of calculation of the pure time preference rate does not reflect the real attitudes of individuals towards future generations.

Suggested Citation

  • Andrea Tabi, 2013. "Using the stated preference method for the calculation of social discount rate," Society and Economy, Akadémiai Kiadó, Hungary, vol. 35(2), pages 167-186, August.
  • Handle: RePEc:aka:soceco:v:35:y:2013:i:2:p:167-186
    Note: The research described herein was financed by the following grant: OTKA105228.
    as

    Download full text from publisher

    File URL: http://www.akademiai.com/content/c763m47330319377/fulltext.pdf
    Download Restriction: subscription

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    social discount rate; stated preferences; revealed preferences; cost-benefit analysis;

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aka:soceco:v:35:y:2013:i:2:p:167-186. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vajda, Lőrinc). General contact details of provider: http://www.akkrt.hu .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.