Business and Economic Horizons

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 10
Issue 1
Online publication date 2014-04-22
Title Discounting in intergenerational investment appraisal - Survey results
Author Monika Foltyn-Zarychta
Abstract Appraising projects with intergenerational effects is a complex task, incorporating the issue of bringing future impacts to present value. This is usually achieved by applying the discount factor. However, the choice of discount rate to intergenerational context faces multiple technical and moral problems. The paper analyses a theoretical rationale behind the concept of intergenerational discount rate and preliminary assessment of intergenerational discount rate level in Poland based on survey done in 2012 among Finance & Insurance Faculty students at University of Economics in Katowice showing the decline in the value of discount rates with time.
Baumol, W.J., 1968. "On the social rate of discount", American Economic Review, Vol.58, Iss. 4, pp.788-802
Berbeka, K., 2008. "Problemy stosowania międzypokoleniowej stopy dyskontowej", Ekonomista, No.2, pp.233-242
Boardman, A.E., Greenberg, D. H., Vining, A. R., Weimer, D. L., 2001. "Cost-benefit analysis: Concepts and practice", Prentice Hall, Inc., Upper Saddle River, New Jersey
Chapman, G.B., 2001. "Time preferences for the very long term", Acta Psychologica, Vol.108, pp.95-116,
Cropper, M.L., Aydede, S. K., Portney, P. R., 1991. "Discounting human lives", American Journal of Agricultural Economics, Vol. 73, No. 5, pp.1410-1415,

Evans, D.J., Sezer, H., 2005. "Social discount rates for member countries of the European Union", Journal of Economic Studies, Vol.32, No.1, pp.47-59,
Foltyn-Zarychta, M., 2010. "Discounting in intergenerational project appraisal - efficient versus just decision making", Scientific Annals of the "Alexandru Ioan Cuza", Economic Sciences, Vol. LVII, University of Iasi, pp.289-301
Frederick, S., 2003. "Measuring intergenerational time preference: Are future lives valued less?", The Journal of Risk and Uncertainty, Vol. 26, No.1, pp.39-53,

Henderson, N., Bateman, I., 1995. "Empirical and public choice evidence for hyperbolic social discount rates and the implications for intergenerational discounting", Environmental and Resource Economics, No.5, pp.413-423,
Malaga, K., 2011. "The main strands and dilemmas of contemporary economic growth theory", Argumenta Oeconomica, No.1 (26), pp.2-26
Miłaszewski, R., 1999. "Zagadnienia ekonomicznej efektywności i finansowania indywidualnych oczyszczalni ścieków", in: Wawrentowicz D. (Ed.), Ochrona zasobów i jakości wód powierzchniowych i podziemnych, Ekonomia i Środowisko, Augustów
OXERA, 2002. "A social time preference rate for use in long-term discounting", OXERA, UK
Rączka, J., 2002. "Analiza efektywności kosztowej w oparciu o wskaźnik dynamicznego kosztu jednostkowego", Transform Advice Programme: Investment in Environmental Infrastructure in Poland, Warszawa
Weitzman, M. L., 2001. "Gamma discounting", The American Economic Review, Vol. 91, No.1, pp.260-271,

Keywords Discount rate, intergenerational investment, effectiveness
Pages 10-17
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Search in articles
Journal Published articles
BEH 626
Journal Hits
BEH 1503572
Journal Downloads
BEH 47811
Total users online -