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The opportunity cost of displaced private spending and the social discount rate
Author(s) -
Haveman Robert H.
Publication year - 1969
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/wr005i005p00947
Subject(s) - social discount rate , economics , opportunity cost , meaning (existential) , discounting , microeconomics , public economics , actuarial science , cost–benefit analysis , psychology , finance , ecology , biology , psychotherapist
The three purposes of this paper are: (1) to describe the major schools of thought regarding the meaning and calculation of the appropriate social discount rate, (2) to specify and defend a preferred opportunity cost approach, and (3) to present an empiric estimate of the appropriate discount rate under conditions prevailing in 1966. This rate was found to be 7.3% for 1966.