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Discounting for public policy: A survey

Abstract:
This article surveys the debate over the social discount rate. The focus is on the economics rather than the philosophy literature, but the survey emphasises foundations in ethical theory rather than highly technical details. I begin by locating the standard approach to discounting within the overall landscape of ethical theory. The article then covers the Ramsey equation and its relationship to observed interest rates, arguments for and against a positive rate of pure time preference, the consumption elasticity of utility, and the effect of various sorts of uncertainty on the discount rate. Climate change is discussed as an application.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1017/S0266267117000062

Authors

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Institution:
University of Oxford
Oxford college:
Somerville College
Role:
Author


Publisher:
Cambridge University Press
Journal:
Economics and Philosophy More from this journal
Volume:
33
Issue:
3
Pages:
391-439
Publication date:
2017-05-01
Acceptance date:
2016-12-11
DOI:
EISSN:
1474-0028
ISSN:
0266-2671


Keywords:
Pubs id:
pubs:672498
UUID:
uuid:e456f2b7-428b-41bc-aa46-f9690c5e2565
Local pid:
pubs:672498
Source identifiers:
672498
Deposit date:
2017-01-24
ARK identifier:

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