Halicioglu, Ferda and Karatas, Cevat (2011): A social discount rate for Turkey.
Download (181kB) | Preview
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|
|Original Title:||A social discount rate for Turkey|
|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
|Depositing User:||Ferda HALICIOGLU|
|Date Deposited:||22. Aug 2011 02:03|
|Last Modified:||11. Aug 2015 02:03|
Azar, A. S. (2007) Measuring the US social discount rate. Applied Financial Economics Letters, 3, 363-66.
Cowell, F. A. and Gardiner, K. (1999) Welfare weights (STICERD). Research Paper, No.20, London School of Economics.
Dickey D. A. and Fuller, W. A. (1981) Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49, 1057–1072.
Elliott, G., Rothenberg, T., and Stock, J. (1996) Efficient tests for an autoregressive unit root. Econometrica, 64, 813–836.
Engle, R. F. and Granger, C. W. (1987) Cointegration and error correction: representation, estimation and testing. Econometrica, 55, 251–276.
European Commission (2002) Guide to Cost-Benefit Analysis of Investment Projects, DG Regional Policy.
Evans, D. J. (2005) The elasticity of marginal utility of consumption: estimates for 20 OECD countries. Fiscal Studies, 26, 197-224.
Evans, D. J. (2004) A social discount rate for France. Applied Economics Letters, 11, 803-808.
Evans, D. J. and Sezer, H. (2005) Social discount rates for member countries of the European Union. Journal of Economic Studies, 32, 47-59.
Evans, D. J. and Sezer, H. (2002) A time preference measure of the social discount rate for the UK. Applied Economics, 34, 1925-1934.
Feldstein, M. S. (1965) Opportunity cost calculations in cost-benefit analysis. Kyklos, 18, 277-287.
Fellner, W. (1967) Operational utility; the theoretical background and measurement, in Ten Economic Studies in the Tradition of Irving Fisher (Ed.) W. Fellner, John Wiley, New York.
Florio, M. (2006) Cost-benefit analysis and European Union cohesion fund: on the social cost of capital and labour. Regional Studies, 40, 211-240.
Kula, E. (2004) Estimation of a social rate of interest for India. Journal of Agricultural Economics, 55, 91-99.
Kula, E. (1984) Derivation of social time preference rates for the US and Canada. The Quarterly Journal of Economics, 99, 873-882.
Lopez, H. (2008) The social discount rate: estimates for nine Latin American countries. Policy Research Papers, No.4639, The World Bank.
Marglin, S. A. (1963) The opportunity cost of public investment. The Quarterly Journal of Economics, 77, 95-111.
Narayan, P.K. (2005). The saving and investment nexus for China: evidence from cointegration tests. Applied Economics, 37, 1979–1990.
Percoco, M. (2008) A social discount rate for Italy. Applied Economics Letters, 15, 73-77.
Pesaran, M. H., Shin, Y. and Smith, R. (2001) Bounds testing approach to the analysis of level relationships. Journal of Applied Econometrics, 16, 289–326.
Phillips, P. C. B. and Perron, P. (1988) Testing for a unit root in time series regression. Biometrika, 75, 335–346.
Ramsey, F. P. (1928) A mathematical model of theory of saving. Economic Journal, 38, 543-559.
Spackman, M. (2006) Social discount rates for the European Union: an overview. Working Papers, No.33, Department of Economics and Statistics, University of Milano.
Spackman, M. (2004) Time preference and the cost of capital of government. Fiscal Studies, 25, 467-518.
Stern, H. N. (1977) Welfare weights and the elasticity of marginal utility of income, in Proceedings of the Annual Conference of the Association of University Teachers of Economics (Eds) M. Artis and R. Norbay, Blackwell, Oxford.