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Estimation of Social Discount Rate in Iran
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Amir Hossein Montazer-Hojat *   , Ibrahim Anvari , Niloofar Farshin |
| Shahid Chamran University of Ahvaz |
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Abstract: (536 Views) |
| Project evaluation is critically important in the public or government sector, as sometimes the economic incentives for efficient resource utilization in this sector are less than in the private sector. At the same time, the scope of the impacts in the public or government sector tends to be much broader. Using an up-to-date and correct social discount rate can maximize the level of welfare derived from investment in this sector. In recent years, due to severe economic fluctuations, the previously estimated social discount rates have become outdated and it is necessary to update them based on current economic conditions. Therefore, the study aims to estimate the social discount rate for the period 1986-2021. Unlike previous domestic studies, this study utilizes both behavioral evidence, and the revealed preference approaches to determine the social discount rate in Iran. The components of the social discount rate in this study include the growth rate of real per capita consumption, the elasticity of marginal utility of consumption, and mortality rate. According to the findings, the social discount rate based on the behavioral evidence and revealed preference approaches is 4.67% and 4.70%, respectively, with an average of 4.685% |
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| Keywords: Social Discount Rate, Behavioral Evidence Approach, Revealed Society preference approach |
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Full-Text [PDF 1504 kb]
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Type of Study: Applicable |
Subject:
Special
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