THE PUBLIC DISCOUNT RATE

ISSN: 1301-3688
Yayın Aralığı: Yılda 3 Sayı
Başlangıç: 1981
Yayıncı: -

Previous studics which aimed at finding a public discount rate based on the opportunity cost concept and using the before - tax rate of retum in the pri-vate sector have not taken into account social costs and the risk premium difference betvveen the public and private sectors. This paper strives to remedy this deficiency b> incorporating into the process the be-nefits that the private sector derives from the government plus the risk premium difference bet-vveen the public and private discount rates.

Anahtar Kelimeler:

THE PUBLIC DISCOUNT RATE, economics

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Marglin, S.A.. «The Social Rate of Discount and the Optimum Rate of Investment. Ouarterly Journal of Economlcs, February 1963, pp. 98-99.
The argument against the use of myopic rates were first formulated by Pigou. A.C. (The Economlcs of VVelfare, London, 1932, pp. 23 - 30) and have been developed by Dobb, M. (An Essay on Economic Growth and Planning, London, 2 nd Ed., 1969, pp. 15 -16) and (On Optimising the Rate of Saving’, Economic Journal, Sen, A.K.. September 1961, pp. 486-491).
Hirshleifer, J., de Havcn, J„ and Milliman, J., Water Supply, Chicago. 1969, p. 117, and Baumol, WJ. On the Social Rate of Discoıınt, American Economic Review, December 1968, pp. 788 -802, and Stockfisch, J.A., The Interest Rate Applicable to Government Investment Projects, in Hin-riclıs, H., and Taylor, G., eds., Program Budgetlng and Benefit - Cost Analysis, Pacific Palisades, Califomia, 1969, pp. 187 - 201.
Marglin, S.A., «The Opportunity Cost of Public Investment», Quarterly Journal of Economics, May 1963, pp. 274-89. For a detailed discussion see also Marglin, S.A., Public Investment Criteria : Benefit - Cost Analy-sls for Planned Economic Gro\vth, M.I.T. Press, Cambridge, Mass., 1967.
Kapp, K.W., Social Costs of Privatc Enterprise, Asia Publishing House 1963.