HARVARD UNIVERSITY
Social rate of discount, targets, and instruments
Recent contributors to the literature on the social rate of discount seem to be converging to the view that the appropriate discount rate to be used in evaluating public projects lies between the marginal social productivity of private investment and the social rate of time preference.
Morawetz, David · 1970
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Abstract
In this note the Tinbergen targets-instruments principle is invoked to argue that this conclusion is based on an unnecessarily restrictive formulation of the problem, and that the outline of a more fruitful approach leading to a different conclusion has already been presented by Maglin and Feldstein.
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