The Social Opportunity Cost of Capital in the Presence of Labour Market Distortions

1989 ◽  
Vol 22 (2) ◽  
pp. 245 ◽  
Author(s):  
David F. Burgess
Keyword(s):  
Labour Market ◽  
Opportunity Cost ◽  
Cost Of Capital ◽  
The Social

scholarly journals The most appropriate discount rate

2013 ◽  
Vol 4 (03) ◽  
pp. 391-400 ◽  
Author(s):  
David F. Burgess ◽  
Richard O. Zerbe
Keyword(s):  
Private Sector ◽  
Discount Rate ◽  
Opportunity Cost ◽  
Time Preference ◽  
Cost Of Capital ◽  
Rate Of Return ◽  
Social Time ◽  
The Social ◽  
Benefits And Costs

The social opportunity cost of capital discount rate is the appropriate discount rate to use when evaluating government projects. It satisfies the fundamental rule that no project should be accepted that has a rate of return less than alternative available projects, and it ensures that worthy projects satisfy the potential Pareto test. The social time preference approach advocated by Moore et al. fails to satisfy either of these criteria even in the unlikely case that the private sector behaves myopically with respect to a project’s future benefits and costs.

On a social discount rate for forestry

1985 ◽  
Vol 15 (5) ◽  
pp. 927-934 ◽  
Author(s):  
P. A. Harou
Keyword(s):  
Discount Rate ◽  
Opportunity Cost ◽  
Cost Of Capital ◽  
Shadow Price ◽  
Social Benefits ◽  
Review Of The Literature ◽  
Social Discount Rate ◽  
The Social ◽  
Forestry Investments ◽  
Present Worth

After a review of the literature on the discount rate in economics and forestry, a methodology is proposed to arrive at an appropriate social discount rate to appraise public forestry investments. In the proposed approach, the opportunity cost of capital is considered in the establishment of a shadow price of investment. The social discount rate, which should weight the project net social benefits through time, is an unknown of the net present worth equation set equal to zero.

On Measuring the Social Opportunity Cost of Labour in the Presence of Tariffs and an Informal Sector (The Distinguishedl Lecture)

1992 ◽  
Vol 31 (4I) ◽  
pp. 535-564 ◽  
Author(s):  
M. Ali Khan
Keyword(s):  
Informal Sector ◽  
Opportunity Cost ◽  
Costs And Benefits ◽  
Open Letter ◽  
Review Of The Literature ◽  
The Social ◽  
Action Project ◽  
Relevant Group ◽  
Net Benefits ◽  
The Individual

Harberger introduced his influential 1971 essay with the following words. This paper is intended not as a scientific study, nor as a review of the literature, but rather as a tract - an open letter to the profession, as it were - pleading that three basic postulates be accepted as providing a conventional framework for applied welfare economics. The postulates are: (a) The competitive demand price for a given unit measures the value of that unit to the demander; (b) The competitive supply price for a given unit measures the value of that unit to the supplier; and (c) When evaluating the net benefits or costs of a given action (project, programme, or policy), the costs and benefits accruing to each member of the relevant group (e.g., a nation) should normally be added without regard to the individual(s) to whom they accrue.

Inequalities in access to cross-border resources? An analysis based on spatio-temporal behaviours in the cross-border area of Greater Geneva

2021 ◽  
pp. 096977642110267
Author(s):  
Alexis Gumy ◽  
Guillaume Drevon ◽  
Vincent Kaufmann
Keyword(s):  
Labour Market ◽  
Border Area ◽  
Cross Border ◽  
The Social ◽  
Neighbouring Country ◽  
Logistic Regressions ◽  
The Cross ◽  
Spatio Temporal

With an activity-based approach, this article offers a new reading of cross-border integration by exploring the social and spatial conditions that predispose specific populations of Greater Geneva to cross its borders. Five different daily cross-border patterns were identified showing that travelling to the neighbouring country is still uncommon among the least qualified populations and women, and that this trend now extends beyond the mere cross-border labour market. Logistic regressions show that Greater Geneva is witnessing a functionalisation of its cross-border integration, revealing mechanisms where the increase of particular mobility may foster segregation and inequalities. This article argues for an approach where cross-border integration is not an objective but rather is a consequence of obligations and constraints that individuals face in their daily behaviours.

Being a golf trainer in China: The life of an artist?

2021 ◽  
pp. 174795412199801
Author(s):  
Boucher Aurélien ◽  
Li Yuqing ◽  
Shao Xueyun
Keyword(s):  
Social Structure ◽  
Labour Market ◽  
Survey Analysis ◽  
Professional Certification ◽  
Quantitative Survey ◽  
The Social ◽  
Winner Takes All

This article investigates the earnings of Chinese golf trainers. Through a combination of ethnographic observations, interviews and a quantitative survey analysis, it depicts the social structure of the economy of golf training in China, showing that golf trainers’ playing abilities and fame, rather than any certificate of competence (e.g. diploma or professional certification), determine their earnings. At the same time, we underline many common characteristics between the artists’ labour market and the golf trainers’ labour market, such as the importance of fame and a winner-takes-all logic.

The Political Economy of Work and Welfare

2021 ◽  
pp. 422-444
Author(s):  
Micheál L. Collins ◽  
Mary P. Murphy
Keyword(s):  
Political Economy ◽  
Labour Market ◽  
Social Protection ◽  
Full Employment ◽  
The Political ◽  
Welfare Regime ◽  
The Social ◽  
Sectoral Composition ◽  
And Migration ◽  
Institutional Architecture

The political economy of Irish work and welfare has dramatically changed over recent decades. Since the 1980s, Ireland has experienced two periods of high unemployment followed by two periods of full employment. Alongside this, we see considerable shifts in both the sectoral composition of the workforce and in the institutional architecture underpinning the labour market. Focusing on the last decade, this chapter contextualizes the Irish labour market in the Irish growth model, highlighting issues including occupational upgrading, low pay, gender composition, and migration. The chapter then explores links between this employment structure and Ireland’s changing welfare regime. It considers recent institutional changes, as the welfare regime shifted to a work-first form of activation, and the long-term sustainability of the social protection system. The chapter concludes by highlighting what we see as the core challenges for the political economy of work and welfare in Ireland.

scholarly journals Appropriate Discounting for Benefit-Cost Analysis

2011 ◽  
Vol 2 (2) ◽  
pp. 1-20 ◽  
Author(s):  
David F. Burgess ◽  
Richard O. Zerbe
Keyword(s):  
Cost Analysis ◽  
Discount Rate ◽  
Cost Of Capital ◽  
Hyperbolic Discounting ◽  
Ease Of Use ◽  
Benefit Cost Analysis ◽  
The Social ◽  
Net Benefits ◽  
Benefit Cost

In order to be sensible about what discount rate to use one must be clear about its purpose. We suggest that its purpose is to help select those projects that will contribute more net benefits than some other discount rate. This approach, which is after all the foundation for benefit-cost analysis, helps to reconcile different suggested procedures for determining the discount rate. We suggest that the social opportunity cost of capital (SOC) is superior to other suggested approaches in its generality and its ease of use. We use the SOC to determine a range of real rates that vary between 6% and 8%. We suggest that approaches based on determination of preferences, which result in hyperbolic discounting, are less appropriate and less useful.

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