Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiaries
The paper aims to diagnose whether it is justified in investment appraisal to apply a separate treatment (in terms of the value of the discount rate) for close-in-time versus distant-in-time project effects as well as for effects applying to close-in-space versus distant-in-space beneficiaries. The...
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| Format: | Article |
| Language: | English |
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Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
2018-05-01
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| Series: | Problemy Zarządzania |
| Subjects: | |
| Online Access: | http://pz.wz.uw.edu.pl/gicid/01.3001.0012.2284 |
| _version_ | 1819227377671077888 |
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| author | dr Monika Foltyn-Zarychta |
| author_facet | dr Monika Foltyn-Zarychta |
| author_sort | dr Monika Foltyn-Zarychta |
| collection | DOAJ |
| description | The paper aims to diagnose whether it is justified in investment appraisal to apply a separate treatment (in terms of the value of the discount rate) for close-in-time versus distant-in-time project effects as well as for effects applying to close-in-space versus distant-in-space beneficiaries. The analysis rests on a survey asking Polish citizens to state their indifference points between lives saved now and in the future (with delays from 10 to 150 years to capture temporal distance) for two separate projects: saving lives in Poland (geographically close) and in Latvia (geographically remote). The findings suggest that while time distance can be perceived as a rationale to apply separate (lower) DRs which increase the weight of time-distant impacts in project’s NPV, outcomes distant in space should be treated as equally important to geographically close impacts, thus extending the analysis beyond national borders.
JEL: H43, D61, D64
null
The creation of the English-language version of these publications is fi nanced in the framework of contract No. 607/P-DUN/2018 by the Ministry of Science and Higher Education committed to activities aimed at the promotion of education. |
| first_indexed | 2024-12-23T10:40:25Z |
| format | Article |
| id | doaj.art-b6ba7d108c2448448ecc22cbadecfb3e |
| institution | Directory Open Access Journal |
| issn | 1644-9584 |
| language | English |
| last_indexed | 2024-12-23T10:40:25Z |
| publishDate | 2018-05-01 |
| publisher | Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego |
| record_format | Article |
| series | Problemy Zarządzania |
| spelling | doaj.art-b6ba7d108c2448448ecc22cbadecfb3e2022-12-21T17:50:12ZengWydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu WarszawskiegoProblemy Zarządzania1644-95842018-05-01162(74) Financial markets...9611510.7172/1644-9584.74.501.3001.0012.2284Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiariesdr Monika Foltyn-Zarychta0University of Economics in Katowice Department of Investment and Real EstateThe paper aims to diagnose whether it is justified in investment appraisal to apply a separate treatment (in terms of the value of the discount rate) for close-in-time versus distant-in-time project effects as well as for effects applying to close-in-space versus distant-in-space beneficiaries. The analysis rests on a survey asking Polish citizens to state their indifference points between lives saved now and in the future (with delays from 10 to 150 years to capture temporal distance) for two separate projects: saving lives in Poland (geographically close) and in Latvia (geographically remote). The findings suggest that while time distance can be perceived as a rationale to apply separate (lower) DRs which increase the weight of time-distant impacts in project’s NPV, outcomes distant in space should be treated as equally important to geographically close impacts, thus extending the analysis beyond national borders. JEL: H43, D61, D64 null The creation of the English-language version of these publications is fi nanced in the framework of contract No. 607/P-DUN/2018 by the Ministry of Science and Higher Education committed to activities aimed at the promotion of education.http://pz.wz.uw.edu.pl/gicid/01.3001.0012.2284discount rateintergenerational decisionsother-regarding behaviourcontingent valuation |
| spellingShingle | dr Monika Foltyn-Zarychta Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiaries Problemy Zarządzania discount rate intergenerational decisions other-regarding behaviour contingent valuation |
| title | Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiaries |
| title_full | Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiaries |
| title_fullStr | Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiaries |
| title_full_unstemmed | Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiaries |
| title_short | Discounting for Intergenerational Investments: Individual Discount Rate for Close and Remote Beneficiaries |
| title_sort | discounting for intergenerational investments individual discount rate for close and remote beneficiaries |
| topic | discount rate intergenerational decisions other-regarding behaviour contingent valuation |
| url | http://pz.wz.uw.edu.pl/gicid/01.3001.0012.2284 |
| work_keys_str_mv | AT drmonikafoltynzarychta discountingforintergenerationalinvestmentsindividualdiscountrateforcloseandremotebeneficiaries |