Optimal Discount Rates for Government Projects
Author
Source
Issue
Vol. 2012, Issue 2012 (31 Dec. 2012), pp.1-13, 13 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-07-17
Country of Publication
Egypt
No. of Pages
13
Main Subjects
Abstract EN
Project selection based on the net present value can be optimal only if the discount rate is optimal.
The optimal discount rate for a government project can be a risk-free rate, a comparable market rate (market interest rate corresponding to the risk of cash flows to the government), or an adjusted market rate, depending on circumstances.
This paper clarifies the conditions for each case.
Provided that the optimal discount rate is the comparable market rate, it varies across intervention methods and changes with the subsidy rate.
American Psychological Association (APA)
Park, Sangkyun. 2012. Optimal Discount Rates for Government Projects. ISRN Economics،Vol. 2012, no. 2012, pp.1-13.
https://search.emarefa.net/detail/BIM-513365
Modern Language Association (MLA)
Park, Sangkyun. Optimal Discount Rates for Government Projects. ISRN Economics No. 2012 (2012), pp.1-13.
https://search.emarefa.net/detail/BIM-513365
American Medical Association (AMA)
Park, Sangkyun. Optimal Discount Rates for Government Projects. ISRN Economics. 2012. Vol. 2012, no. 2012, pp.1-13.
https://search.emarefa.net/detail/BIM-513365
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-513365