A social discount rate for Turkey

Halicioglu, Ferda and Karatas, Cevat (2011): A social discount rate for Turkey.

Abstract

ocial Discount Rate (SDR) is a very crucial policy parameter in public project appraisals due to its resource allocation impacts. This study estimates an SDR for Turkey using the Social Time Preference Rate (STPR) approach. The elasticity of the marginal utility consumption, which is the most important component of the STPR, is estimated econometrically from a demand for food approach during the period of 1980-2008. The overall result indicates that the SDR for Turkey is 5.06%. The European Union requires evaluation of the publicly supported commercial projects in terms of the SDR; hence the findings from this study can be used as a useful policy measurement for a full EU member candidate country, Turkey.

• Item Type: MPRA Paper
• Language: English
• Keywords: ocial discount rate; social time preference; project appraisal; ARDL; Turkey
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes

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