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The Social Discount Rate

May 24 - 25 2012, Seminar, Bergen

Day 1
Day 2
The Program
Practical Information
Contact Us
The Social Discount Rate - Day 1
The Government appointed expert committee to review the framework for cost benefit analysis in Norway welcomes you to seminar
20.05 List of Participants, Sec, (word format)
20.05 Practical Information, Sec, (word format)

21.05 Folder, Sec (password required),
Folder will be distributed at seminar and contains practical information and suggested readings.
Papers/reports with reference to The Social Discount Rate from participants of The Seminar
Thursday 24.05 - Time 09.45 - Finn Kydland Auditorium - Norwegian School of Economics (NHH)
Christian Gollier
10.00 - 11.30 The economics of long term discounting, by Christian Gollier
20.05 Summary, biography and suggested readings word, Christian Gollier
Recommended readings (as listed by the speaker):
Martin L. Weitzman
12.30 - 13.30 Long term discounting in a hidden-state stochastic growth process, by Martin L. Weitzman
24.05 Presentation: The Ramsey Discounting Formula for a Hidden-State Stochastic Growth Process, by Martin Weitzman
20.05 Summary, biography and suggested readings word, Martin L. Weitzman
Recommended readings (as listed by the speaker):
2010 Risk-adjusted gamma discounting, Martin L. Weitzman
2010 How should the distant future be discounted when discount rates are uncertain?, Christian Gollier and Martin L. Weitzman
2001 Gamma Discounting, Martin L. Weitzman
1998 Why the Far-Distant Future Should be Discounted at Its Lowest Possible Rate, Martin L. Weitzman
Cameron Hepburn 
13.45 - 14.45 Social discounting under uncertainty: A cross country comparison, by Cameron Hepburn
Recommended readings (as listed by the speaker):

2007 Discount Rates in the Estimation of the Costs of Inaction with Respect to Environmental Concerns, C. Hepburn (OECD)

2009 Social Discounting under uncertainty: A Cross - Country Comparison,  by Cameron Hepburn with others

2007 Stern Review Part 1: Climate Change - Our Approach  (click here for external link to complete report), Stern Review


Knut K. Aase

14.45 - 15.45 Long term discount rates and risk premiums under uncertainty, by Knut K. Aase
24.05 Presentation, by Knut K. Aase
Recommended readings:
2007 Part 1: Climate Change - Our Apprach, Stern Review on the economics of climate change


Bård Harstad 

16.00 - 16.45 Investment Policy for Time-Inconsistent Discounters, by Bård Harstad
Recommended readings (as listed by the speaker, updated by speaker May 23 2012):

2010 Temptation and Taxation, Per Krusell, Burhanettin Kuruscu and Anthony A. Smith jr

2002 Time Discounting and Time Preference: A Critical Review, Frederick, Loewenstein, O'Donoghue

2007 Estimating Discount Functions with Consumption Choices over the Lifecycle, Laibson et al.


Earlier recommendations:

1997 Golden Eggs and Hyperbolic Discounting, David Laibson

2003 Consumption-Savings Decisions with Quasi-Geometric Discounting, Per Krusell and Anthony A. Smith jr


Geir Aavitsland

16.45 - 17.00 The background for the current Norwegian guidelines for discount rates for public projects, by Geir Aavitsland

The presentation gives some background information for the Norwegian guidelines for public discount rates. It shows how a framework based on estimation of parameters along an optimal consumption path has been replaced by a more market based approach

Thore Johnsen
17.00 - 17.30 The long term discount rate: Some comments from a practical point of view, by Thore Johnsen
24.05 Presentation: The Long Term Discount Rate, by Thore Johnsen
20.05 Summary, biography and suggested readings, Thore Johnsen
The presentation will discuss major issues in the practical implementation of models of cost of capital and discounting in long public projects. The long horizon problem will be central, but the presentation will also discuss more general the measurement and market calibration of risk adjustment in public projects. This will also include the choice between adjusting the project’s net benefits and its discount rate

On behalf of The Government appointed expert committee to review the framework for cost benefit analysis in Norway we are pleased that you were able to attend this seminar. If you have some comments for improvement or other proposals, do not hesitate to call us up or send us an e-mail.

Frode Karlsen
Phone: +(47 ) 414 02 521