The Entrepreneurial Social Discount Rate: Risk Premium and Loss Aversion in New Ventures

The Entrepreneurial Social Discount Rate: Risk Premium and Loss Aversion in New Ventures

We derive a mathematical extension of the social discount rate (SDR) in such a way that we can valuate intergenerational startups financed with personal and government funds at the aggregate level. The results imply that the precise determination of the SDR can change the financial priority of inves...

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Bibliographic Details
Main Authors:	David Ceballos Hornero, Samuel Mongrut Montalván
Format:	Article
Language:	English
Published:	Instituto Mexicano de Ejecutivos de Finanzas 2021-03-01
Series:	Revista Mexicana de Economía y Finanzas Nueva Época REMEF
Subjects:	social discount rate, non-systematic risk, loss aversion, entrepreneurship.
Online Access:	https://www.remef.org.mx/index.php/remef/article/view/610

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