The discounting premium puzzle: Survey evidence from professional economists - Archive ouverte HAL Accéder directement au contenu
Article Dans Une Revue Journal of Environmental Economics and Management Année : 2023

The discounting premium puzzle: Survey evidence from professional economists

Résumé

We surveyed economists’ attitudes toward adjusting discount rates to the risk profile of public programs. Three-quarters of respondents recommend to use project-specific discount rates. For example, on average, respondents discount railway infrastructures more than hospitals and climate mitigation. But the degree of discount discrimination between distinct risk profiles of different projects is fairly limited in our sample given the differences in risk profiles for these projects. Economic experts thus penalize risky public projects far less than financial markets penalize private investments. We call this the ”discount premium puzzle”. Finally, among experts in favor of a single discount rate, there is no consensus on whether it should be based on the average cost of capital in the economy, the sovereign borrowing cost, or the Ramsey rule, which gives rise to disagreement over the level of the recommended discount rate.
Fichier sous embargo
Fichier sous embargo
0 4 9
Année Mois Jours
Avant la publication
lundi 16 septembre 2024
Fichier sous embargo
lundi 16 septembre 2024
Connectez-vous pour demander l'accès au fichier

Dates et versions

hal-04227459 , version 1 (04-10-2023)

Identifiants

Citer

Christian Gollier, Frederick van der Ploeg, Jiakun Zheng. The discounting premium puzzle: Survey evidence from professional economists. Journal of Environmental Economics and Management, 2023, 122, pp.102882. ⟨10.1016/j.jeem.2023.102882⟩. ⟨hal-04227459⟩
44 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More