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Government Time Discounting and Required Rates of Return: UK History and Current Issues

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  • Michael Spackman

Abstract

The UK government first set financial objectives for the nationalised industries in 1961 and subsequently promoted the use of ‘discounted cash flow’ for investment appraisal. The nationalised industry regime evolved until, in the 1990s, it was succeeded by economic regulation regimes for the privatised utilities. Meanwhile discounting conventions emerged and have continued to evolve for wider government policy analysis, including aspects of climate change. Issues about the size and functions of public expenditure notwithstanding, UK government conventions are currently fairly uncontroversial: however, in the world at large, government discounting remains subject to many academic and international controversies and misunderstandings.

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  • Michael Spackman, 2013. "Government Time Discounting and Required Rates of Return: UK History and Current Issues," Economic Affairs, Wiley Blackwell, vol. 33(2), pages 190-206, June.
    • Handle: RePEc:bla:ecaffa:v:33:y:2013:i:2:p:190-206
    DOI: 10.1111/ecaf.12013
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    References listed on IDEAS

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    Cited by:

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    2. Spackman, Michael, 2021. "Social discounting and the cost of public funding in practice," LSE Research Online Documents on Economics 111490, London School of Economics and Political Science, LSE Library.
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    4. Peter Abelson & Tim Dalton, 2018. "Choosing the Social Discount Rate for Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(1), pages 52-67, March.

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