SOCIAL DISCOUNT RATE: ASSESSMENT METHODOLOGY
Journal Title: Baltic Journal of Economic Studies - Year 2018, Vol 4, Issue 2
Abstract
The purpose of the paper is to investigate the assessment methods of social discount rate, to determine its calculation algorithm and to substantiate applied aspects relatively implementation of one or another method during cash flow discounting in social projects. Methodology. The research used such methods as follows: method of comparative analysis was used to find out advantages and limitations of chosen assessment methodologies of the social discount rate; synthesis and generalization methods were used during investigation of the gathered experience concerning application of assessment methodology of social discount rate; logical method was used to substantiate made assumptions; formalization method was used to determine assessment parameters of social discount rate. Results. To achieve the target goal, the following tasks were solved: theoretical studies on the assessment of social discount rate were systemized and the most adapted method for a practical implementation was determined; available pragmatic approaches to the determination of the parameters of social discount rate were investigated and the algorithm of its estimation is substantiated; evaluation of research results were tried out. Practical implications. The article substantiates the necessity of application of social discount rate in the evaluation process of investment projects of the public sector. The theoretical approaches to the choice of the social discount rate were studied. The assessment methods developed and adapted for application in the world practice for discounting public projects were considered. The arguments concerning the expediency of application of the social rate of time preferences for the evaluation of public projects are considered. Different approaches to the determination of the social rate of time preferences are analysed. Value/originality. As a result of the research, parameters of the social rate of time preferences were determined. The application algorithm of the assessment methodology of the social rate of time preferences for public project discounting is indicated. The approbation of the assessment methodology of the social discount rate for discounting projects of the public sector in Ukraine was carried out.
Authors and Affiliations
Volodymyr Lipkan, Liudmyla Vasiutynska, Ihor Diorditsa
Keywords
Related Articles
- EP ID EP554411
- DOI 10.30525/2256-0742/2018-4-2-114-118
- Views 90
- Downloads 0
ANALYSIS OF THE SOCIO-ECONOMIC DEVELOPMENT OF UKRAINIAN REGIONS
For a long period of time from 1991 to 2016, the socio-economic development of Ukrainian regions was characterized by enhanced differentiation and persistent inequality. Permanent preservation of the gap between the maxi...
METHODS FOR DIAGNOSING THE EFFECTIVENESS OF THE ENTERPRISE’S FINANCIAL STRATEGY IN THE STRATEGY CONTROLLING SYSTEM
The purpose of the article is to describe how the controlling system is implemented and controlling tools are applied at enterprises in Ukraine. The article contains selected results of the survey research conducted by t...
DEVELOPING A METHODOLOGY TO ASSESS THE ENVIRONMENTAL AND ECONOMIC PERFORMANCE INDEX BASED ON INTERNATIONAL RESEARCH TO RESOLVE THE ECONOMIC AND ENVIRONMENTAL PROBLEMS OF UKRAINE
The urgency of the research. Developing a new approach to economic and environmental problems grounded on the need to form new awareness and responsibility makes it necessary to conduct an in-depth study of the causes an...
INNOVATIONS AS A PRIORITY FACTOR OF THE REGIONAL ECONOMIC DEVELOPMENT
The goal of the paper is to study the role and assess the innovation impact on the economic development of the region. Methodology. Theoretical and methodological foundations of the research draw the works of scientists...
GIFTS FOR A PUBLIC SERVANT: WHETHER IT IS WORTH TO COMPLY WITH THE RULES
The article substantiates the expediency to distinguish a kind of “gift relations in the public service” – “gift relations with the participation of close persons of a public servant.” The author draws attention to the s...