IDEAS home Printed from https://ideas.repec.org/a/eme/jespps/jes-02-2019-0081.html
   My bibliography  Save this article

A protocol for the estimate of the social rate of time preference: the case studies of Italy and the USA

Author

Listed:
  • Antonio Nesticò
  • Gabriella Maselli

Abstract

Purpose - The purpose of the paper is to characterize an evaluation protocol of the social discount rate (SDR). This is based on the social rate of time preference (SRTP) principles, according to which the investment selection process must tend to maximize the utility of the community. Design/methodology/approach - The theoretical reference of the evaluation protocol is represented by the Ramsey formula. It is widely used in many countries with advanced economics for the SRTP estimation, through the maximization of the Social Welfare Function (SWF). Findings - The protocol structure and the protocol applications to the Italian and US economies explain how the SDR value is influenced by the socio-economic structure of the single nation. Research limitations/implications - The strong variability of the results of the SDR according to the theoretical approach of reference and the operating path that follows can lead to judgments decidedly divergent on the acceptability of the public project, hence, the important policy implications for the entire allocation process of public resources. Practical implications - The applications allow to highlight the important operational problems that must be resolved with regard to the choice of the time intervals of the evaluations, as well as logical-operational tools to be used to express estimates of parameters. Social implications - They are relevant in relation to the effects of a more equitable allocation of the resources. Originality/value - The protocol for the SDR estimation is based both on solid disciplinary principles and on objective data of non-complex availability and representative of the economic and socio-demographic context of the country in which the decision-making process is implemented.

Suggested Citation

  • Antonio Nesticò & Gabriella Maselli, 2020. "A protocol for the estimate of the social rate of time preference: the case studies of Italy and the USA," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(3), pages 527-545, March.
  • Handle: RePEc:eme:jespps:jes-02-2019-0081
    DOI: 10.1108/JES-02-2019-0081
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JES-02-2019-0081/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JES-02-2019-0081/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/JES-02-2019-0081?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roberta Troisi & Annamaria Nese & Rocío Blanco-Gregory & Monica Anna Giovanniello, 2023. "The Effects of Corruption and Innovation on Sustainability: A Firm-Level Analysis," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    2. Gabriella Maselli & Antonio Nesticò, 2021. "The Role of Discounting in Energy Policy Investments," Energies, MDPI, vol. 14(19), pages 1-18, September.
    3. Monika Foltyn-Zarychta & Rafał Buła & Krystian Pera, 2021. "Discounting for Energy Transition Policies—Estimation of the Social Discount Rate for Poland," Energies, MDPI, vol. 14(3), pages 1-21, January.
    4. Özlem Turan & Serkan Gurluk, 2024. "The Impacts of Social Discount Rate in Countries Striving for Industrialization," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5428-5442, June.
    5. Rafał Buła & Monika Foltyn-Zarychta, 2022. "Declining Discount Rates for Energy Policy Investments in CEE EU Member Countries," Energies, MDPI, vol. 16(1), pages 1-27, December.
    6. Valentyna Stanytsina & Volodymyr Artemchuk & Olga Bogoslavska & Artur Zaporozhets & Antonina Kalinichenko & Jan Stebila & Valerii Havrysh & Dariusz Suszanowicz, 2022. "Fossil Fuel and Biofuel Boilers in Ukraine: Trends of Changes in Levelized Cost of Heat," Energies, MDPI, vol. 15(19), pages 1-18, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jespps:jes-02-2019-0081. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.