The social discount rate and the cost of public funds: a search for more consistency and better practice

Abstract

Three, mutually inconsistent approaches to social discounting and the cost of public funds have persisted for fi fty years. All have distinguished academic support. All present problems of concept and/or application. This leads to a global loss of cost e ff ectiveness in public spending and regulation. This essay reviews the issues and o ff ers a practitioner ’ s view on what limited but realistic potential there may be for more consistency and better practice.