Formats and related files
Abstract#
This report estimates the ‘social rate of time preference’ (SRTP) for New Zealand public policy appraisal using a Ramsey equation. It uses the Weitzman (1998) method to derive a declining discount rate schedule of 2% (real) for years 1–30, 1.5% for years 31–100, and 1% for years 101 on. The report does not compare and contrast social discount rate methods and how to use them in practice.
Disclaimer#
The views, opinions, findings, and conclusions or recommendations expressed in this working paper are strictly those of the author(s). They do not necessarily reflect the views of the New Zealand Treasury or the New Zealand Government. The New Zealand Treasury and the New Zealand Government take no responsibility for any errors or omissions in, or for the correctness of, the information contained in this working paper. The paper is presented not as policy, but with a view to inform and stimulate wider debate.
Acknowledgements#
Cory Davis, for assisting with Python; to Luke Symes, Tim Ng, Dr Zachary Turk, Dr Graeme Guthrie, and Professor Ben Groom for quality assurance/peer review; Kirsten Jensen, Dr Chris Thompson, Shane Domican, and Dominick Stephens for comment. All errors remain those of the author.