The Social Discount Rate : Estimates for Nine Latin American Countries
The social discount rate measures the rate at which a society would be willing to trade present for future consumption. As such it is one of the most critical inputs needed for cost-benefit analysis. This paper presents estimates of the social disc...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/06/9493488/social-discount-rate-estimates-nine-latin-american-countries http://hdl.handle.net/10986/6659 |
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okr-10986-66592021-04-23T14:02:32Z The Social Discount Rate : Estimates for Nine Latin American Countries Lopez, Humberto ALTERNATIVE USE AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE TAX RATES CALCULATION CALCULATIONS COMMODITY COMMODITY PRICES CONSUMERS COST EFFECTIVENESS COUNTRY LEVEL CROSS COUNTRY DENSITY FUNCTION DERIVATIVES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DISCOUNT RATE DISCOUNT RATES ECONOMETRIC MODELS ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC REVIEW ECONOMICS ECONOMICS LETTERS ECONOMICS LITERATURE ELASTICITY EMPIRICAL ESTIMATES EMPIRICAL LITERATURE EMPIRICAL STUDIES EMPIRICAL WORKS EXPECTED VALUE EXPENDITURE FINANCIAL SECTORS FORECASTS FUTURE GROWTH FUTURE INCOME GDP GOVERNMENT BONDS GROWTH LITERATURE GROWTH MODELS GROWTH PROJECTIONS GROWTH PROSPECTS GROWTH RATE GROWTH RATES HIGH GROWTH HIGH INCOME COUNTRIES HISTORICAL GROWTH INCOME DISTRIBUTION INCOME LEVEL INCOME LEVELS INCOME TAX INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT PROGRAMS LATIN AMERICAN LIFE SPAN LIFETIMES LONG RUN LOWER INTEREST RATE LUMP SUM MARGINAL TAX MARGINAL TAX RATE MARGINAL TAX RATES MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION MORTALITY RATES OPPORTUNITY COST PER CAPITA CONSUMPTION PER CAPITA CONSUMPTION GROWTH PER CAPITA GROWTH PER CAPITA GROWTH RATE PER CAPITA INCOME PER CAPITA INCOME LEVEL PER CAPITA INCOME LEVELS PERSONAL INCOME POINT ESTIMATES POLICY MAKERS POLICY MAKING POLICY RESEARCH POLITICAL ECONOMY POSITIVE IMPACT PRIVATE INVESTMENT PRIVATE SECTOR PROBABILITY PRODUCTION FUNCTIONS PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC GOODS PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PUBLIC SECTOR BORROWING PUBLIC SPENDING RATE OF INTEREST RATE OF RETURN REAL RATE RISK AVERSION SAVINGS SAVINGS BEHAVIOR SAVINGS PROGRAM SIGNIFICANT DIFFERENCES TAX TAX RATE TAX RATES TAX REGIME TREASURY UTILITY FUNCTION WORTH Social discount rate cost-benefit analysis The social discount rate measures the rate at which a society would be willing to trade present for future consumption. As such it is one of the most critical inputs needed for cost-benefit analysis. This paper presents estimates of the social discount rates for nine Latin American countries. It is argued that if the recent track record in terms of growth in the region is indicative of future performance, estimates of the social discount rate would be in the 3-4 percent range. However, to the extent that the region improves on its past performance, the social discount rate to be used in the evaluation of projects would increase to the 5-7 percent range. The paper also argues that if the social planner gives a similar chance to the low and high growth scenario, the discount rate should be dependent on the horizon of the project, declining from 4.4 percent for a 25-year horizon to less than 4 percent for a 100-year horizon. 2012-05-30T17:00:10Z 2012-05-30T17:00:10Z 2008-06 http://documents.worldbank.org/curated/en/2008/06/9493488/social-discount-rate-estimates-nine-latin-american-countries http://hdl.handle.net/10986/6659 English Policy Research Working Paper; No. 4639 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Latin America |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ALTERNATIVE USE AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE TAX RATES CALCULATION CALCULATIONS COMMODITY COMMODITY PRICES CONSUMERS COST EFFECTIVENESS COUNTRY LEVEL CROSS COUNTRY DENSITY FUNCTION DERIVATIVES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DISCOUNT RATE DISCOUNT RATES ECONOMETRIC MODELS ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC REVIEW ECONOMICS ECONOMICS LETTERS ECONOMICS LITERATURE ELASTICITY EMPIRICAL ESTIMATES EMPIRICAL LITERATURE EMPIRICAL STUDIES EMPIRICAL WORKS EXPECTED VALUE EXPENDITURE FINANCIAL SECTORS FORECASTS FUTURE GROWTH FUTURE INCOME GDP GOVERNMENT BONDS GROWTH LITERATURE GROWTH MODELS GROWTH PROJECTIONS GROWTH PROSPECTS GROWTH RATE GROWTH RATES HIGH GROWTH HIGH INCOME COUNTRIES HISTORICAL GROWTH INCOME DISTRIBUTION INCOME LEVEL INCOME LEVELS INCOME TAX INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT PROGRAMS LATIN AMERICAN LIFE SPAN LIFETIMES LONG RUN LOWER INTEREST RATE LUMP SUM MARGINAL TAX MARGINAL TAX RATE MARGINAL TAX RATES MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION MORTALITY RATES OPPORTUNITY COST PER CAPITA CONSUMPTION PER CAPITA CONSUMPTION GROWTH PER CAPITA GROWTH PER CAPITA GROWTH RATE PER CAPITA INCOME PER CAPITA INCOME LEVEL PER CAPITA INCOME LEVELS PERSONAL INCOME POINT ESTIMATES POLICY MAKERS POLICY MAKING POLICY RESEARCH POLITICAL ECONOMY POSITIVE IMPACT PRIVATE INVESTMENT PRIVATE SECTOR PROBABILITY PRODUCTION FUNCTIONS PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC GOODS PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PUBLIC SECTOR BORROWING PUBLIC SPENDING RATE OF INTEREST RATE OF RETURN REAL RATE RISK AVERSION SAVINGS SAVINGS BEHAVIOR SAVINGS PROGRAM SIGNIFICANT DIFFERENCES TAX TAX RATE TAX RATES TAX REGIME TREASURY UTILITY FUNCTION WORTH Social discount rate cost-benefit analysis |
| spellingShingle |
ALTERNATIVE USE AVERAGE GROWTH AVERAGE GROWTH RATE AVERAGE TAX RATES CALCULATION CALCULATIONS COMMODITY COMMODITY PRICES CONSUMERS COST EFFECTIVENESS COUNTRY LEVEL CROSS COUNTRY DENSITY FUNCTION DERIVATIVES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DISCOUNT RATE DISCOUNT RATES ECONOMETRIC MODELS ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC REVIEW ECONOMICS ECONOMICS LETTERS ECONOMICS LITERATURE ELASTICITY EMPIRICAL ESTIMATES EMPIRICAL LITERATURE EMPIRICAL STUDIES EMPIRICAL WORKS EXPECTED VALUE EXPENDITURE FINANCIAL SECTORS FORECASTS FUTURE GROWTH FUTURE INCOME GDP GOVERNMENT BONDS GROWTH LITERATURE GROWTH MODELS GROWTH PROJECTIONS GROWTH PROSPECTS GROWTH RATE GROWTH RATES HIGH GROWTH HIGH INCOME COUNTRIES HISTORICAL GROWTH INCOME DISTRIBUTION INCOME LEVEL INCOME LEVELS INCOME TAX INTEREST RATE INTEREST RATES INTERNATIONAL BANK INVESTMENT PROGRAMS LATIN AMERICAN LIFE SPAN LIFETIMES LONG RUN LOWER INTEREST RATE LUMP SUM MARGINAL TAX MARGINAL TAX RATE MARGINAL TAX RATES MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION MORTALITY RATES OPPORTUNITY COST PER CAPITA CONSUMPTION PER CAPITA CONSUMPTION GROWTH PER CAPITA GROWTH PER CAPITA GROWTH RATE PER CAPITA INCOME PER CAPITA INCOME LEVEL PER CAPITA INCOME LEVELS PERSONAL INCOME POINT ESTIMATES POLICY MAKERS POLICY MAKING POLICY RESEARCH POLITICAL ECONOMY POSITIVE IMPACT PRIVATE INVESTMENT PRIVATE SECTOR PROBABILITY PRODUCTION FUNCTIONS PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC GOODS PUBLIC INVESTMENT PUBLIC POLICIES PUBLIC SECTOR PUBLIC SECTOR BORROWING PUBLIC SPENDING RATE OF INTEREST RATE OF RETURN REAL RATE RISK AVERSION SAVINGS SAVINGS BEHAVIOR SAVINGS PROGRAM SIGNIFICANT DIFFERENCES TAX TAX RATE TAX RATES TAX REGIME TREASURY UTILITY FUNCTION WORTH Social discount rate cost-benefit analysis Lopez, Humberto The Social Discount Rate : Estimates for Nine Latin American Countries |
| geographic_facet |
Latin America & Caribbean Latin America |
| relation |
Policy Research Working Paper; No. 4639 |
| description |
The social discount rate measures the
rate at which a society would be willing to trade present
for future consumption. As such it is one of the most
critical inputs needed for cost-benefit analysis. This paper
presents estimates of the social discount rates for nine
Latin American countries. It is argued that if the recent
track record in terms of growth in the region is indicative
of future performance, estimates of the social discount rate
would be in the 3-4 percent range. However, to the extent
that the region improves on its past performance, the social
discount rate to be used in the evaluation of projects would
increase to the 5-7 percent range. The paper also argues
that if the social planner gives a similar chance to the low
and high growth scenario, the discount rate should be
dependent on the horizon of the project, declining from 4.4
percent for a 25-year horizon to less than 4 percent for a
100-year horizon. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lopez, Humberto |
| author_facet |
Lopez, Humberto |
| author_sort |
Lopez, Humberto |
| title |
The Social Discount Rate : Estimates for Nine Latin American Countries |
| title_short |
The Social Discount Rate : Estimates for Nine Latin American Countries |
| title_full |
The Social Discount Rate : Estimates for Nine Latin American Countries |
| title_fullStr |
The Social Discount Rate : Estimates for Nine Latin American Countries |
| title_full_unstemmed |
The Social Discount Rate : Estimates for Nine Latin American Countries |
| title_sort |
social discount rate : estimates for nine latin american countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/06/9493488/social-discount-rate-estimates-nine-latin-american-countries http://hdl.handle.net/10986/6659 |
| _version_ |
1764400863973998592 |