Future Generations and the Social Rate of Discount

1973 ◽  
Vol 5 (5) ◽  
pp. 611-617 ◽  
Author(s):  
C A Nash
Keyword(s):  
Cost Benefit Analysis ◽  
Public Investment ◽  
Cost Benefit ◽  
Real Income ◽  
Future Generations ◽  
Benefit Analysis ◽  
Investment Appraisal ◽  
Social Rate ◽  
Irreversible Effects

This paper reexamines the case for discounting for time in public investment appraisal where long-term or irreversible effects on future generations are involved. It is concluded that—while, in the short-term, considerations of equity reinforce the commonly advocated case for discounting for time—in evaluating long-term or irreversible effects, current discounting procedures require the doubtful assumption of perpetual exponential growth of real income. However, if discounting were abandoned, use of the standard cost—benefit-analysis framework would require the forecasting of shadow prices for all future dates, unless an arbitrary time horizon is adopted. Thus cost—benefit analysis does not appear to be a satisfactory method for evaluating effects on future generations.

Cost-Benefit Analysis and the Control of Public Expenditure: An Assessment of British Experience in the 1980s

1990 ◽  
Vol 10 (2) ◽  
pp. 103-131 ◽  
Author(s):  
Massimo Florio
Keyword(s):  
Financial Analysis ◽  
Cost Benefit Analysis ◽  
Public Investment ◽  
Cost Benefit ◽  
Health Department ◽  
Minor Role ◽  
Benefit Analysis ◽  
Home Office ◽  
Investment Appraisal ◽  
A Minor

ABSTRACTThis paper examines approaches to public investment appraisal as theyare currently recommended in the British Treasury and implemented byevaluation units within the Department of Health, Department of Transport and the Home Office. The evidence suggests that spending departments have reacted to the pressure for increased selectivity in their expenditures by adopting a heterogeneous blend of appraisal techniques, including financial analysis, cost-effectiveness and option appraisal, withcost-benefit analysis eventually playing a minor role. The imposition of cash limits rations capital expenditures. When these constraints bite departments differently, either a unique social discount rate for projectappraisal is inappropriate or the rations themselves are giving wrong signals to the departments The departments do not have an incentive todevote time and effort to cost benefit analysis and other techniques of a more limited scope are implemented.

The Use of Cost-Benefit Analysis for Evaluating Efficiency of Public Investment Projects (The Case of Sochi-2014 Winter Olympic Games)

2011 ◽  
pp. 57-78
Author(s):  
I. Pilipenko
Keyword(s):  
Net Present Value ◽  
Olympic Games ◽  
Cost Benefit Analysis ◽  
Public Investment ◽  
Cost Benefit ◽  
Investment Efficiency ◽  
Benefit Analysis ◽  
Step Method ◽  
Investment Projects ◽  
The Usa

The paper analyzes shortcomings of economic impact studies based mainly on input- output models that are often employed in Russia as well as abroad. Using studies about sport events in the USA and Olympic Games that took place during the last 30 years we reveal advantages of the cost-benefit analysis approach in obtaining unbiased assessments of public investments efficiency; the step-by-step method of cost-benefit analysis is presented in the paper as well. We employ the project of Sochi-2014 Winter Olympic and Paralympic Games in Russia to evaluate its efficiency using cost-benefit analysis for five accounts (areas of impact), namely government, households, environment, economic development, and social development, and calculate the net present value of the project taking into account its possible alternatives. In conclusion we suggest several policy directions that would enhance public investment efficiency within the Sochi-2014 Olympics.

A cost-benefit analysis of peer coaching for overhead lift use in the long-term care sector in Canada

2015 ◽  
Vol 73 (5) ◽  
pp. 308-314 ◽  
Author(s):  
Emile Tompa ◽  
Roman Dolinschi ◽  
Hasanat Alamgir ◽  
Anna Sarnocinska-Hart ◽  
Jaime Guzman
Keyword(s):  
Peer Coaching ◽  
Long Term Care ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Term Care

Part IX Costs, Funding, and Ideas for Optimization, 28 Optimizing the use of Mediation in International Arbitration: A Cost–Benefit Analysis of ‘Two Hat’ Versus ‘Two People’ Models

2016 ◽  
Author(s):  
Waincymer Jeffrey
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Dual Role ◽  
Benefit Analysis ◽  
Dual Roles ◽  
Party Autonomy ◽  
Key Points ◽  
Fairness And Efficiency ◽  
Full Cooperation

This chapter considers the question of whether an arbitrator may also adopt a mediation function or whether the dual roles are antithetical. It tests that hypothesis by engaging in a cost-benefit analysis of differing scenarios when mediation is utilized in an arbitral context. The prime comparison is between parallel mediation with a separate neutral and the alternative of a dual-role neutral. The three key points are: there should be much more mediation occurring at the international level, regarding both potential and actual arbitral disputes; a commercially minded arbitrator concerned for the parties’ good faith should encourage mediation where appropriate, in particular, when an adjudicated outcome will not be in the interests of either, usually because the dispute is a small part of a long-term relationship that can risk that relationship no matter who wins; and, while informed party autonomy should always support a dual-role neutral, in most factual permutations, informed parties could be expected to prefer parallel mediation provided there is full cooperation between mediator and arbitrator. The chapter argues that the relative benefits of the use of dual-role neutrals would be greatly outweighed by the costs in fairness and efficiency, and the inevitable need for a sub-optimal design of either or both dispute processes. The benefits would also be separately outweighed by the risks of significant disruption to any ensuing arbitration if a dual-role neutral fails to achieve a settlement.

scholarly journals Cost–benefit analysis of a staff recreation centre project: build or lease? – A Case Study

2013 ◽  
Vol 4 (1) ◽  
pp. 41
Author(s):  
Monica Singhania
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
New Delhi ◽  
Employee Morale ◽  
Benefit Analysis ◽  
The Cost ◽  
Community Centre

This case study aims at comprehensively assessing a decision by XYZ Ltd (name withheld due to confidentiality), New Delhi, on whether to build or to lease a recreation centre for its rank-and-file employees. Based on a cost–benefit analysis, we concluded that the centre should be built since the company would recover its investment within 11 years. Apart from the financial considerations, the recreation centre could be considered a long-term investment in employee morale, as it would lead to a better quality of life for the staff and their families, and is likely to enhance their sense of belonging and improve productivity. To date, what little space there is available for hosting family functions is reserved for the use of the officers, and only officers and their families are invited to most company functions. Thus, the other employees feel neglected by the management. Hiring a community centre external to the organisation for a function would involve spending a lot of money as the company is located in a prime real estate area where the cost of land and rentals is huge, and sometimes even availability is an issue. Most of the staff cannot afford such places and are generally under a lot of stress whenever they have a family function. This, in turn, tends to affect their productivity. 

Railway Investment Appraisal Techniques

2016 ◽  
pp. 67-99
Author(s):  
Miloš Milenković ◽  
Libor Švadlenka ◽  
Nebojša Bojović ◽  
Vlastimil Melichar
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Benefit Analysis ◽  
Railway Transport ◽  
Investment Appraisal ◽  
Analytical Tools ◽  
Made In

Railway transport involves the expenditure of resources on a combination of investment in capital items (e.g. stations, tracks, equipment) and/or in operations (e.g. subsidies). Concerning the fact that there are limited amounts of resources, it is necessary to maximize the returns obtained from the investments of those resources. The best way to do this is to ensure that the resources will be allocated on those projects that maximize their return. Railway appraisals therefore represent a way of thinking about all the costs and benefits of different railway related spending projects in a systematic manner so that, the projects can be compared and investments made in those which are going to provide the maximum possible return on the investment. This chapter provides a review of the main analytical tools that should be used in the process of railway investments appraisal. Namely, a detailed description of discounting, Net Present Value (NPV), Internal Rate of Return (IRR) and Cost Benefit Analysis (CBA) is covered by this chapter.

Sign in / Sign up

Export Citation Format

Share Document