SOCIAL DISCOUNT RATES FOR SIX TRANSITION COUNTRIES

• Authors: Seçilmiş Erdem , Akbulut Hale
• Languages of publication: EN

Abstracts

EN

The key role of public sector investments in economic transformations makes the choice of social discount rate especially crucial for transition countries. The aim of this study is to estimate the social discount rates of six transition economies – Czech Republic, Estonia, Hungary, Latvia, Poland and Slovak Republic – by using two different approaches. We observe that the estimates produced by tax approach are concentrated in a band between 3.3% (Hungary) and 6.91% (Estonia). In comparison with tax approach estimations, the social discount rates obtained by food demand approach are lower for all selected countries: the lowest value is 1.94% (Czech Republic) and the highest is 3.5% (Latvia).

Keywords

EN

SOCIAL DISCOUNT RATE; TRANSITION ECONOMIES; CZECH REPUBLIC; ESTONIA; HUNGARY; LATVIA; POLAND; SLOVAK REPUBLIC

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2019
• Volume: 67
• Issue: 6
• Pages: 629 – 646

Contributors

author

Seçilmiş Erdem

• Hacettepe University, Department of Public Finance, Ankara, Turkey

author

Akbulut Hale