IDEAS home Printed from
   My bibliography  Save this article

The Social Rate of Discount and The Optimal Rate of Investment


  • Stephen A. Marglin


Introduction, 95. — The authoritarian answer, 96. — The schizophrenic answer, 98. — The interdependence answer, 99. — Determining the social rate of discount, 109. — Conclusion, 111.

Suggested Citation

  • Stephen A. Marglin, 1963. "The Social Rate of Discount and The Optimal Rate of Investment," The Quarterly Journal of Economics, Oxford University Press, vol. 77(1), pages 95-111.
  • Handle: RePEc:oup:qjecon:v:77:y:1963:i:1:p:95-111.

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

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


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Abi Adams & Laurens Cherchye & Bram De Rock & Ewout Verriest, 2014. "Consume Now or Later? Time Inconsistency, Collective Choice, and Revealed Preference," American Economic Review, American Economic Association, vol. 104(12), pages 4147-4183, December.
    2. Richard B. Howarth, 1996. "Climate Change And Overlapping Generations," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 100-111, October.
    3. Nijkamp, P., 1985. "Equity and efficiency in environmental policy analyses : separability versus inseparability," Serie Research Memoranda 0004, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    4. Lawrence H. Goulder & Ian W. H. Parry, 2008. "Instrument Choice in Environmental Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(2), pages 152-174, Summer.
    5. John C. V. Pezzey, 2004. "Sustainability Policy and Environmental Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(2), pages 339-359, June.
    6. John C. V. Pezzey, 2002. "A One-sided Sustainability Test With Multiple Consumption Goods," Working Papers in Ecological Economics 0201, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program.
    7. J.-F. Besson, 1966. "Centralisation et décentralisation. Le problème des biens collectifs," Revue Économique, Programme National Persée, vol. 17(4), pages 560-602.
    8. Andrew Caplin & John Leahy, 2004. "The Social Discount Rate," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1257-1268, December.
    9. Mouter, Niek & Chorus, Caspar, 2016. "Value of time – A citizen perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 317-329.
    10. Pezzey, John C.V., 2001. "Optimality, Hartwick’s Rule, and Instruments of Sustainability Policy and Environmental Policy," 2001 Conference (45th), January 23-25, 2001, Adelaide 125833, Australian Agricultural and Resource Economics Society.
    11. Gijsbers, D. & Nijkamp, P., 1986. "A varying social rate of discount : review of arguments," Serie Research Memoranda 0041, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    12. Kenneth Arrow & Partha Dasgupta & Lawrence Goulder & Gretchen Daily & Paul Ehrlich & Geoffrey Heal & Simon Levin & Karl-Göran Mäler & Stephen Schneider & David Starrett & Brian Walker, 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer.
    13. Hertzler, Greg & Barton, John, 1992. "Dynamic Model of Dryland Salinity Abatement," Discussion Papers 232285, University of Western Australia, School of Agricultural and Resource Economics.
    14. Boss, Alfred, 1989. "Capital income taxation in the Federal Republic of Germany: What is wrong? What can be done?," Kiel Working Papers 402, Kiel Institute for the World Economy (IfW).
    15. Antony Millner & Geoffrey Heal, 2016. "Collective Intertemporal Choice: the Possibility of Time Consistency," NBER Working Papers 22524, National Bureau of Economic Research, Inc.
    16. Norgaard, Richard B., 1992. "Sustainability and the economics of assuring assets for future generations," Policy Research Working Paper Series 832, The World Bank.
    17. Karbowski, Adam, 2016. "Discussion on the Social Rate of Discount: from Sen to Behavioural Economics," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 46-60.
    18. Christian Westerlind Wigstrom, 2013. "A British Investment Bank: Why and How?," Global Policy, London School of Economics and Political Science, vol. 4, pages 22-29, July.
    19. Antony Millner & Geoffrey Heal, 2015. "Collective intertemporal choice: time consistency vs. time invariance," GRI Working Papers 220, Grantham Research Institute on Climate Change and the Environment.
    20. Robert Delorme, 1976. "A propos du taux d'actualisation du Plan," Revue Économique, Programme National Persée, vol. 27(1), pages 1-30.
    21. Nijkamp, P., 1989. "Long-term tradeoffs for sustainability policies in the area of environmental toxicology : an economic analysis of a nimby syndrome," Serie Research Memoranda 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    22. Konrad, Kai A., 1992. "Wealth seeking reconsidered," Journal of Economic Behavior & Organization, Elsevier, vol. 18(2), pages 215-227, July.
    23. Levy, Nadav & Pauzner, Ady, 2014. "Government's credit-rating concerns and the evaluation of public projects," Journal of Public Economics, Elsevier, vol. 115(C), pages 117-130.
    24. John C. V. Pezzey, 2002. "One-sided Unsustainability Tests and NNP Measurement with Multiple Consumption Goods," Economics and Environment Network Working Papers 0208, Australian National University, Economics and Environment Network.
    25. repec:spr:waterr:v:31:y:2017:i:15:d:10.1007_s11269-017-1794-3 is not listed on IDEAS

    More about this item


    Access and download statistics


    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:oup:qjecon:v:77:y:1963:i:1:p:95-111.. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    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.