Question
1. Why are social discount rates (SDRs) so important? 2.What are the major issues involved in the selection of the social discount rate? 3. Is
1. Why are social discount rates (SDRs) so important?
2.What are the major issues involved in the selection of the social discount rate?
3. Is the market rate of interest a good estimate of the social MRTP?
4. Compare and contrast the three main methods of calculating the SDR.
5. It has been claimed that "The principle of revealed preference has been oversold, in particular when used to justify use of the market interest rate in evaluating social investments." How might this be correct? For example, we use SDR to value the future, but should/can we include the values of the past in making future valuations?
6. If an optimal policy turns on how the CBA analyst should weigh the perspectives of individuals in various time periods, then how should disagreements among their temporal selves get resolved?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started