Intergenerational Discount Rates in Long-term Plan Evaluation
This paper provides a new contribution to the discussion on discount rates for social cost-benefit analysis of long-term plans, with a special emphasis on intergenerational problems. First, the use of the well-known net present value is critically discussed. Attention is focused on reinvestment possibilities; especially its shortcomings in long-run plan evaluation problems. The problem of multiple generations is then discussed. An adjusted intergenerational social discount rate is suggested, and its link with the conventional discount rate is formally be derived.
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Volume (Year): 43 (1988)
Issue (Month): 2 ()
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