Discount rates for government investment projects: The economic logic behind OMB circular A-94

Engineering Economist

Volumn 43, Issue 4, 1998, Pages 290-307

  Goldberg, Matthew S ^a  

^a INSTITUTE FOR DEFENSE ANALYSES   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

COSTS AND BENEFITS; DISCOUNT RATES; GOVERNMENT INVESTMENT PROJECTS; GOVERNMENT PROJECTS; INVESTMENT DECISIONS; MARKET TRANSACTIONS; OFFICE OF MANAGEMENT AND BUDGETS;

ENGINEERING; INDUSTRIAL ECONOMICS;

INVESTMENTS;

EID: 33947194534     PISSN: 0013791X     EISSN: 15472701     Source Type: Journal    
DOI: 10.1080/00137919808903201     Document Type: Article

References (13)

1. BAUMOL, WILLIAM J., "On the Social Rate of Discount,"Amefican Economic Review. Vol. 58, Sept. 1968, pp. 788-802.
2. Executive Office of the President, Office of Management and Budget. Circular No. A-94. Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Pmgrams. Oct. 1992 and annual updates. Also available on the Internet: http://www.whitehouse.gov/WH/EOP/OMB/html/circulars/aO94/a094.html
3. FAMA, EUGENE F. and MERTON H. MILLER, The Theory of Finance, Dryden Press. Hinsdale. III., 1972.
4. FELDSTEIN, MARTIN S., "Net Social Benefit Calculation and the Public Investment Decision."Oxford Economic Papers, Vol. 16, Apr. 1964, pp. 114-131.
5. FELDSTEIN, MARTIN S., 'The Social lime Preference Discount Rate in Cost-Benefit Analysis." Economic Journal. Vol. 74. June 1964. pp. 360-379.
6. GALE, DAVID, The Theory of Linear Economic Models, McGraw-Hill. New York. 1960.
7. HADLEY, GEORGE, Linear Programming, Addison-Wesley, Reading, Mass., 1962.
8. HIRSHLEIFER, JACK, investment, Interest, and Capital, Prentice-Hall. Englewood Cliffs, N.J., 1970.
9. LIND, ROBERT C., editor. Discounting for Time and Risk in Energy Policy, Resources for the Future, Washington. D.C., 1982.
10. MARGLIN, STEPHEN A., " The Social Rate of Discount and the Optimal Rate of Investment," Quarterly Journal of Economics. Vol. 78. Feb. 1963. pp. 95-111.
11. MARGLIN, STEPHEN A,. 'The Opportunity Costs of Public Investment," Quarrerly Journal of Economics, Vol. 78. May 1963, pp. 274-289.
12. QUIRK, JAMES P. and KATSUAKI TERASAWA, The Choice of Discount Rare Applicable to Government Resource Use: Theory and Limitations, RAND Corporation, R-3464-PA&E, Santa Monica. Calif., 1987.
13. STOCKFISCH, JACOB, "Measuring the Opportunity Cost of Government Investment," Institute for Defense Analyses, Paper P-490. Alexandria, Va., Mar. 1969.