Social Discount Rates for Six Transition Countries

Secilmis E., AKBULUT H.

EKONOMICKY CASOPIS, cilt.67, sa.6, ss.629-646, 2019 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 67 Sayı: 6
  • Basım Tarihi: 2019
  • Dergi Adı: EKONOMICKY CASOPIS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.629-646
  • Anahtar Kelimeler: social discount rate, transition economies, project appraisal, TIME-PREFERENCE, CROWDING-OUT, PUBLIC-INVESTMENTS, MARGINAL UTILITY, COST, CONSUMPTION, APPRAISAL, PROJECTS, HISTORY, RETURN
  • Hacettepe Üniversitesi Adresli: Evet

Özet

The key role of public sector investments in economic transformations makes the choice of social discount rate especially crucial for transition countries. The aim of this study is to estimate the social discount rates of six transition economies - Czech Republic, Estonia, Hungary, Latvia, Poland, Slovak Republic by using two different approaches. We observe that the estimates produced by tax approach are concentrated in a band between 3.3% (Hungary) and 6.91% (Estonia). In comparison with tax approach estimations, the social discount rates obtained by food demand approach are lower for all selected countries: the lowest value is 1.94% (Czech Republic) and the highest is 3.5% (Latvia).