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Calculating the Social Opportunity Cost Discount Rate
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David F. Burgess
Veröffentlicht/Copyright:
25. August 2011
Two comments in this issue of the Journal address our recent article in Volume 2, Issue 2. The fundamental issue with both comments is that they confuse the financial rate of return with the opportunity cost rate of return and therefore advocate for an inappropriate basis on which to calculate the government discount rate. That is, both comments confuse the financial cost of funds, or the borrowing rate, with the economic opportunity cost of funds. We hope that this exchange advances the subject by reducing confusion.
Keywords: discount rate
Published Online: 2011-8-25
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Artikel in diesem Heft
- Article
- Risk Heterogeneity and the Value of Reducing Fatal Risks: Further Market-Based Evidence
- The Combination of Lab and Field Experiments for Benefit-Cost Analysis
- Benefit-Cost Analysis with Local Residents' Stated Preference Information: A Study of Non-Motorized Transport Investments in Pune, India
- Valuing the Benefit for Cancer Patients of Receiving Blood Transfusions at Home
- Principles and Standards
- Towards Principles and Standards for the Benefit-Cost Analysis of Safety
- Response or Comment
- Comment on Burgess and Zerbe: On Bank Market Power and the Social Discount Rate
- Comment on Burgess and Zerbe's "Appropriate Discounting for Benefit-Cost Analysis"
- Calculating the Social Opportunity Cost Discount Rate
Schlagwörter für diesen Artikel
discount rate
Artikel in diesem Heft
- Article
- Risk Heterogeneity and the Value of Reducing Fatal Risks: Further Market-Based Evidence
- The Combination of Lab and Field Experiments for Benefit-Cost Analysis
- Benefit-Cost Analysis with Local Residents' Stated Preference Information: A Study of Non-Motorized Transport Investments in Pune, India
- Valuing the Benefit for Cancer Patients of Receiving Blood Transfusions at Home
- Principles and Standards
- Towards Principles and Standards for the Benefit-Cost Analysis of Safety
- Response or Comment
- Comment on Burgess and Zerbe: On Bank Market Power and the Social Discount Rate
- Comment on Burgess and Zerbe's "Appropriate Discounting for Benefit-Cost Analysis"
- Calculating the Social Opportunity Cost Discount Rate
