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Social discounting and the cost of public funds: problems with current global practice

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  • Spackman, Michael

Abstract

Since the early days of social discounting, in the 1960s, three mutually inconsistent approaches have become globally embedded. All face significant analytical and/or practical problems. This essay reviews the issues, why the divisions persist, and the contexts in which the inconsistencies may contribute significantly to misleading analysis. It concludes that there may never be any broad global consensus on best practice, but identifies aspects where limited progress may sometimes be feasible.

Suggested Citation

  • Spackman, Michael, 2025. "Social discounting and the cost of public funds: problems with current global practice," LSE Research Online Documents on Economics 128517, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:128517
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    File URL: http://eprints.lse.ac.uk/128517/
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    More about this item

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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