The social discount rate in the evaluation of investment projects: an application for Ecuador
The standard social discount rate of 12% applied by planning institutions and multilateral agencies when evaluating public projects is a constant administrative parameter that is unsupported and unresponsive to changes in social preferences over time. This paper presents an alternative way of determining the social discount rate based on the gamma estimation model (Weitzman, 2001) in a developing-country context, which has three advantages: (i) it incorporates decreasing discounting, (ii) it is cost-efficient in that it sums up the various expert opinions and (iii) it adjusts for changes in short- and long-term preferences. Our estimates are lower than the standard nominal rate for different time periods, ranging from 2% for evaluation horizons longer than 51 years to 11% for the short term (0–5 years).
Main Authors: | , |
---|---|
Format: | Texto biblioteca |
Language: | English |
Published: |
2021-08-31
|
Subjects: | INVERSIONES, PROYECTOS DE DESARROLLO, PREPARACION DE PROYECTOS, EVALUACION DE PROYECTOS, IGUALDAD, ECONOMIA DEL BIENESTAR, MODELOS MATEMATICOS, PAISES EN DESARROLLO, INVESTMENTS, DEVELOPMENT PROJECTS, PROJECT PREPARATION, PROJECT EVALUATION, EQUALITY, WELFARE ECONOMICS, MATHEMATICAL MODELS, DEVELOPING COUNTRIES, |
Online Access: | https://hdl.handle.net/11362/47523 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
dig-cepal-11362-47523 |
---|---|
record_format |
koha |
spelling |
dig-cepal-11362-475232023-01-23T13:30:34Z The social discount rate in the evaluation of investment projects: an application for Ecuador Castillo, José Gabriel Zhangallimbay, Donald INVERSIONES PROYECTOS DE DESARROLLO PREPARACION DE PROYECTOS EVALUACION DE PROYECTOS IGUALDAD ECONOMIA DEL BIENESTAR MODELOS MATEMATICOS PAISES EN DESARROLLO INVESTMENTS DEVELOPMENT PROJECTS PROJECT PREPARATION PROJECT EVALUATION EQUALITY WELFARE ECONOMICS MATHEMATICAL MODELS DEVELOPING COUNTRIES The standard social discount rate of 12% applied by planning institutions and multilateral agencies when evaluating public projects is a constant administrative parameter that is unsupported and unresponsive to changes in social preferences over time. This paper presents an alternative way of determining the social discount rate based on the gamma estimation model (Weitzman, 2001) in a developing-country context, which has three advantages: (i) it incorporates decreasing discounting, (ii) it is cost-efficient in that it sums up the various expert opinions and (iii) it adjusts for changes in short- and long-term preferences. Our estimates are lower than the standard nominal rate for different time periods, ranging from 2% for evaluation horizons longer than 51 years to 11% for the short term (0–5 years). 2021-12-01T23:50:46Z 2021-12-01T23:50:46Z 2021-08-31 Texto Sección o Parte de un Documento https://hdl.handle.net/11362/47523 LC/PUB.2021/13-P 4 en CEPAL Review CEPAL Review 134 .pdf application/pdf ECUADOR ECUADOR |
institution |
CEPAL |
collection |
DSpace |
country |
Chile |
countrycode |
CL |
component |
Bibliográfico |
access |
En linea |
databasecode |
dig-cepal |
tag |
biblioteca |
region |
America del Sur |
libraryname |
Biblioteca Hernán Santa Cruz |
language |
English |
topic |
INVERSIONES PROYECTOS DE DESARROLLO PREPARACION DE PROYECTOS EVALUACION DE PROYECTOS IGUALDAD ECONOMIA DEL BIENESTAR MODELOS MATEMATICOS PAISES EN DESARROLLO INVESTMENTS DEVELOPMENT PROJECTS PROJECT PREPARATION PROJECT EVALUATION EQUALITY WELFARE ECONOMICS MATHEMATICAL MODELS DEVELOPING COUNTRIES INVERSIONES PROYECTOS DE DESARROLLO PREPARACION DE PROYECTOS EVALUACION DE PROYECTOS IGUALDAD ECONOMIA DEL BIENESTAR MODELOS MATEMATICOS PAISES EN DESARROLLO INVESTMENTS DEVELOPMENT PROJECTS PROJECT PREPARATION PROJECT EVALUATION EQUALITY WELFARE ECONOMICS MATHEMATICAL MODELS DEVELOPING COUNTRIES |
spellingShingle |
INVERSIONES PROYECTOS DE DESARROLLO PREPARACION DE PROYECTOS EVALUACION DE PROYECTOS IGUALDAD ECONOMIA DEL BIENESTAR MODELOS MATEMATICOS PAISES EN DESARROLLO INVESTMENTS DEVELOPMENT PROJECTS PROJECT PREPARATION PROJECT EVALUATION EQUALITY WELFARE ECONOMICS MATHEMATICAL MODELS DEVELOPING COUNTRIES INVERSIONES PROYECTOS DE DESARROLLO PREPARACION DE PROYECTOS EVALUACION DE PROYECTOS IGUALDAD ECONOMIA DEL BIENESTAR MODELOS MATEMATICOS PAISES EN DESARROLLO INVESTMENTS DEVELOPMENT PROJECTS PROJECT PREPARATION PROJECT EVALUATION EQUALITY WELFARE ECONOMICS MATHEMATICAL MODELS DEVELOPING COUNTRIES Castillo, José Gabriel Zhangallimbay, Donald The social discount rate in the evaluation of investment projects: an application for Ecuador |
description |
The standard social discount rate of 12% applied by planning institutions and multilateral agencies when evaluating public projects is a constant administrative parameter that is unsupported and unresponsive to changes in social preferences over time. This paper presents an alternative way of determining the social discount
rate based on the gamma estimation model (Weitzman, 2001) in a developing-country context, which has three advantages: (i) it incorporates decreasing discounting, (ii) it is cost-efficient in that it sums up the various expert opinions and (iii) it adjusts for changes in short- and long-term preferences. Our estimates are lower than the
standard nominal rate for different time periods, ranging from 2% for evaluation horizons longer than 51 years to 11% for the short term (0–5 years). |
format |
Texto |
topic_facet |
INVERSIONES PROYECTOS DE DESARROLLO PREPARACION DE PROYECTOS EVALUACION DE PROYECTOS IGUALDAD ECONOMIA DEL BIENESTAR MODELOS MATEMATICOS PAISES EN DESARROLLO INVESTMENTS DEVELOPMENT PROJECTS PROJECT PREPARATION PROJECT EVALUATION EQUALITY WELFARE ECONOMICS MATHEMATICAL MODELS DEVELOPING COUNTRIES |
author |
Castillo, José Gabriel Zhangallimbay, Donald |
author_facet |
Castillo, José Gabriel Zhangallimbay, Donald |
author_sort |
Castillo, José Gabriel |
title |
The social discount rate in the evaluation of investment projects: an application for Ecuador |
title_short |
The social discount rate in the evaluation of investment projects: an application for Ecuador |
title_full |
The social discount rate in the evaluation of investment projects: an application for Ecuador |
title_fullStr |
The social discount rate in the evaluation of investment projects: an application for Ecuador |
title_full_unstemmed |
The social discount rate in the evaluation of investment projects: an application for Ecuador |
title_sort |
social discount rate in the evaluation of investment projects: an application for ecuador |
publishDate |
2021-08-31 |
url |
https://hdl.handle.net/11362/47523 |
work_keys_str_mv |
AT castillojosegabriel thesocialdiscountrateintheevaluationofinvestmentprojectsanapplicationforecuador AT zhangallimbaydonald thesocialdiscountrateintheevaluationofinvestmentprojectsanapplicationforecuador AT castillojosegabriel socialdiscountrateintheevaluationofinvestmentprojectsanapplicationforecuador AT zhangallimbaydonald socialdiscountrateintheevaluationofinvestmentprojectsanapplicationforecuador |
_version_ |
1756194965259550720 |