scholarly journals Calculating the Social Opportunity Cost Discount Rate

2011 ◽  
Vol 2 (03) ◽  
pp. 1-10 ◽  
Author(s):  
David F. Burgess ◽  
Richard O. Zerbe
Keyword(s):  
Discount Rate ◽  
Opportunity Cost ◽  
Rate Of Return ◽  
Economic Opportunity ◽  
Financial Cost ◽  
Cost Rate ◽  
The Social ◽  
The Subject ◽  
The Government ◽  
Cost Discount

Two comments in this issue of the Journal address our recent article in Volume 2, Issue 2. The fundamental issue with both comments is that they confuse the financial rate of return with the opportunity cost rate of return and therefore advocate for an inappropriate basis on which to calculate the government discount rate. That is, both comments confuse the financial cost of funds, or the borrowing rate, with the economic opportunity cost of funds. We hope that this exchange advances the subject by reducing confusion.

scholarly journals The most appropriate discount rate

2013 ◽  
Vol 4 (03) ◽  
pp. 391-400 ◽  
Author(s):  
David F. Burgess ◽  
Richard O. Zerbe
Keyword(s):  
Private Sector ◽  
Discount Rate ◽  
Opportunity Cost ◽  
Time Preference ◽  
Cost Of Capital ◽  
Rate Of Return ◽  
Social Time ◽  
The Social ◽  
Benefits And Costs

The social opportunity cost of capital discount rate is the appropriate discount rate to use when evaluating government projects. It satisfies the fundamental rule that no project should be accepted that has a rate of return less than alternative available projects, and it ensures that worthy projects satisfy the potential Pareto test. The social time preference approach advocated by Moore et al. fails to satisfy either of these criteria even in the unlikely case that the private sector behaves myopically with respect to a project’s future benefits and costs.

The 2016 Police and Crime Commissioner elections

2017 ◽  
Vol 16 (2) ◽  
pp. 41-54 ◽  
Author(s):  
Peter Joyce
Keyword(s):  
Public Awareness ◽  
Primary Source ◽  
Source Material ◽  
Content Type ◽  
The Public ◽  
The Social ◽  
Key Issues ◽  
The Subject ◽  
The Government

Purpose The purpose of this paper is to analyse the 2016 elections for Police and Crime Commissioners (PCCs) and to compare them with those that took place in 2012. It seeks to evaluate the background of the candidates who stood for office in 2016, the policies that they put forward, the results of the contests and the implications of the 2016 experience for future PCC elections. Design/methodology/approach This paper is based around several key themes – the profile of candidates who stood for election, preparations conducted prior to the contests taking place, the election campaign and issues raised during the contests, the results and the profile of elected candidates. The paper is based upon documentary research, making particular use of primary source material. Findings The research establishes that affiliation to a political party became the main route for successful candidates in 2016 and that local issues related to low-level criminality will dominate the future policing agenda. It establishes that although turnout was higher than in 2012, it remains low and that further consideration needs to be devoted to initiatives to address this for future PCC election contests. Research limitations/implications The research focusses on the 2016 elections and identifies a number of key issues that emerged during the campaign affecting the conduct of the contests which have a bearing on future PCC elections. It treats these elections as a bespoke topic and does not seek to place them within the broader context of the development of the office of PCC. Practical implications The research suggests that in order to boost voter participation in future PCC election contests, PCCs need to consider further means to advertise the importance of the role they perform and that the government should play a larger financial role in funding publicity for these elections and consider changing the method of election. Social implications The rationale for introducing PCCs was to empower the public in each police force area. However, issues that include the enhanced importance of political affiliation as a criteria for election in 2016 and the social unrepresentative nature of those who stood for election and those who secured election to this office in these contests coupled with shortcomings related to public awareness of both the role of PCCs and the timing of election contests threaten to undermine this objective. Originality/value The extensive use of primary source material ensures that the subject matter is original and its interpretation is informed by an academic perspective.

The Weitzman Argument

2012 ◽  
Author(s):  
Christian Gollier
Keyword(s):  
Discount Rate ◽  
Opportunity Cost ◽  
Net Present Value ◽  
Cost Of Capital ◽  
Cash Flows ◽  
Simple Rule ◽  
Rate Of Return ◽  
Net Benefit ◽  
Investment Projects ◽  
Net Benefits

This chapter examines a model in which the exogeneous rate of return of capital is constant but random. Safe investment projects must be evaluated and implemented before this uncertainty can be fully revealed, i.e., before knowing the opportunity cost of capital. A simple rule of thumb in this context would be to compute the net present value (NPV) for each possible discount rate, and to implement the project if the expected NPV is positive. If the evaluator uses this approach, this is as if one would discount cash flows at a rate that is decreasing with maturity. This approach is implicitly based on the assumptions that the stakeholders are risk-neutral and transfer the net benefits of the project to an increase in immediate consumption. Opposite results prevail if one assumes that the net benefit is consumed at the maturity of the project.

On a social discount rate for forestry

1985 ◽  
Vol 15 (5) ◽  
pp. 927-934 ◽  
Author(s):  
P. A. Harou
Keyword(s):  
Discount Rate ◽  
Opportunity Cost ◽  
Cost Of Capital ◽  
Shadow Price ◽  
Social Benefits ◽  
Review Of The Literature ◽  
Social Discount Rate ◽  
The Social ◽  
Forestry Investments ◽  
Present Worth

After a review of the literature on the discount rate in economics and forestry, a methodology is proposed to arrive at an appropriate social discount rate to appraise public forestry investments. In the proposed approach, the opportunity cost of capital is considered in the establishment of a shadow price of investment. The social discount rate, which should weight the project net social benefits through time, is an unknown of the net present worth equation set equal to zero.

scholarly journals PEMANFAATAN SAMPAH MENJADI DEKORASI BUNGA GUNA UNTUK MEMINIMALISIR SAMPAH DAN MENINGKATKAN PENDAPATAN EKONOMI SAMPINGAN PADA IBU-IBU PKK DI DUSUN PAELOAN DESA SUMBERBARU

2020 ◽  
Vol 2 (2) ◽  
pp. 331-356
Author(s):  
Lilit Biati ◽  
Ridwan ◽  
Arif Hariyanto
Keyword(s):  
Social Change ◽  
Plastic Waste ◽  
Inorganic Materials ◽  
Selling Price ◽  
Participatory Action ◽  
The Public ◽  
The Social ◽  
The Subject ◽  
The Government ◽  
The Village

the use of plastics can provide convenience and practicality, plastic also has a particularly bad impact on the environment. Plastics contain artificial inorganic materials which are composed of chemicals that are dangerous enough for the environment. This waste of plastic is very difficult to decompose naturally. To decompose plastic waste itself, it takes approximately 80 years to completely degrade. Currently the government is increasingly active in providing awareness to the public to reduce the use of plastics in life, then providing teaching on how to treat plastic waste into goods that are beneficial to life. Participatory action research has three word elements, all of which have a connection between Participation, Action and Research. In the process of carrying out social change for the better, it must involve all levels of society who are the object or target as well as the subject where the social change must be carried out. utilization of organic waste which can be used as various kinds of valuable creativity and has a selling price that can improve the community's economy, and also make the environment clean and healthy. Making society in a harmonious and peaceful environment. There won't be any problems. The village will be safe and secure.

scholarly journals Accountability in Public Administration: A Case Study of Public Administration to the Poor People in Social Department of Makassar, Indonesia

2020 ◽  
Vol 11 (1) ◽  
pp. 108
Author(s):  
Sahruddin Malik ◽  
Fakhri Kahar ◽  
Darman Manda
Keyword(s):  
Public Administration ◽  
Qualitative Case Study ◽  
Poor People ◽  
Case Study Approach ◽  
Study Approach ◽  
The Poor ◽  
The Social ◽  
The Subject ◽  
The Government

Accountability in providing public administration to the poor people in the Social Department of Makassar. This study was qualitative case study approach, while the instruments were the researchers themselves. This study showed that the accountability in providing public administration to the poor people had not run optimally. There were various approaches and alleviation programs for poverty that had not been able to change significantly. There was no continuous program during the official turnover. If the official was changed, then the policy would be changed, thus the programs were ineffective to minimize the poverty in Makassar. The policies and the supports were necessary from all the elements of construction and the involvement of entrepreneurs like stakeholders and community leaders. The government is necessary to take a role in uniting and bridging these issues. In addition, the strategic planning was necessary to involve society, not only as objects of development but also to be involved as the subject of development to alleviate the poverty in Makassar.

scholarly journals Combating Adult Illiteracy in the People’s Republic of Poland (on the Example of Selected Documents of the Ministry of Education and the Office of the Government Plenipotentiary for Combating Illiteracy in 1949–1951)

2016 ◽  
Vol 37 (7) ◽  
Author(s):  
Magdalena Budnik
Keyword(s):  
Social Progress ◽  
Ministry Of Education ◽  
The Social ◽  
Archival Documents ◽  
The Subject ◽  
The Government ◽  
Selection Of

The subject of this article is combating adult illiteracy in the People’s Republic of Poland. The existing knowledge concerning the topic has been supplemented with the analysis of the archival documents, currently being in possession of the Central Archives of Modern Records in Warsaw. It describes how illiterates were recognised in the society, in what way they were encour­aged to train new skills and how attending the courses was made possible for them. The analysed documents include censors’ reviews of manuals, press articles, letters wrote by former illiterates and other valuable records. The communists were combating illiteracy not only in the name of the social progress, but mostly motivated by their quest to broaden the possibilities of ideological indoctrination – during the courses organised for illiterates and later on. This is why the selection of manuals and other publications addressed to former illiterates was propagandist. The strategic importance of the matter was expressed by Vladimir Lenin himself: “Socialism cannot be built by illiterates” (W. Ozga, Educa­tion in the six-year-plan and the revolutionary changes of the society and economics in the People’s Republic of Poland, Warsaw 1951, p. 124).

Political management of emigration from Bangladesh in the framework of a social network theory

Upravlenie ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 123-132
Author(s):  
Shahanaz Parven
Keyword(s):  
Social Network ◽  
International Migration ◽  
Network Theory ◽  
Social Network Theory ◽  
The Social ◽  
Political Management ◽  
The Subject ◽  
Migration Flows ◽  
The Government ◽  
The Relationship

The subject of the study is the social network theory for the management of international migration. The theory suggests that migration from the society of origin to the hosting society can occur if links exist between these two societies, and that the flow of migrants follows the established links. The theoretical prediction which one can make is that, if the political administration wishes to establish a flow of migrants between any two societies, a link between these two societies must be established first. The author tested the theory on the case of managing the emigration of workers by the government of Bangladesh. The paper found that, firstly, the links between the origin society and the host society were created artificially, however, in contrast to the theoretical forecast, the author observed that such links usually do not correspond to the geographical distribution of maximum proximity to origin or destination society. Instead, the study revealed, that the closeness of communication between two societies is generated by the proximity between political administrations of the same societies, which contradicts the theoretical expectations. In this regard, the author proposed to expand the theory of international migration in the social network, suggesting that the proximity between two political administrations, and not between two societies as a whole, is a condition necessary for international migration. This, in turn, allows us to fill a theoretical gap that is associated with the relationship between social network theory and the management of international migration. The paper concludes that it is possible to generate arbitrary migration flows, creating appropriate links between any two societies.

scholarly journals The choice of the social discount rate and the opportunity cost of public funds

2013 ◽  
Vol 4 (03) ◽  
pp. 401-409 ◽  
Author(s):  
Mark A. Moore ◽  
Anthony E. Boardman ◽  
Aidan R. Vining
Keyword(s):  
Discount Rate ◽  
Opportunity Cost ◽  
Capital Investment ◽  
Private Investment ◽  
Social Discount Rate ◽  
Public Funds ◽  
Benefit Cost Analysis ◽  
Social Rate ◽  
The Social ◽  
Government Project

The decades-old literature on the correct method for choosing and estimating a social discount rate (SDR) has resulted in two, largely opposing viewpoints. This note seeks to clarify the key sources of disagreement between these two camps. One view advocates that the choice should be based chiefly on the social opportunity cost of the return to foregone private capital investment (SOC), and suggests a SDR of around 7%. The other viewpoint, expressed by the authors, argues that the choice should be based on the social rate of time preference (STP), the rate at which society is willing to trade present for future consumption, suggesting a SDR of around 3.5%. Because of the fundamentally normative basis of the SDR choice, neither approach generates testable hypotheses that would allow falsification. For government project evaluation, the choice ultimately depends on the opportunity cost of public funds, which in turn depends on how fiscal policy actually operates. The STP approach contends that governments set targets for deficits and public debt, so that a marginal government project will be tax-financed, largely crowding out current consumption. The SOC belief is that governments set revenue targets, so that any government project will be deficit-financed on the margin, which will largely crowd out private investment. The authors also argue that a SDR based on the STP approach is appropriate for: benefit-cost analysis of government regulations, self-financing government projects, and government cost-effectiveness studies.

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