| Autor: |
Hone, Simon, Gooday, Peter, Hafi, Ahmed, Greenville, Jared |
| Rok vydání: |
2022 |
| Předmět: |
|
| DOI: |
10.25814/pdwp-6y91 |
| Popis: |
Purpose This technical paper provides rigorous and practical guidance on how economists should approach discount rates and the treatment of risk in their analysis of agricultural projects. Key findings • The standard approach in most Australian economic analysis is to discount future costs and benefits at 7 per cent. However, this is not always a good approximation. In particular, it does not account for differences in riskiness between the projects being evaluated and alternatives. • The theoretically correct approach for discount rates and the treatment of risk is described and contrasted with the standard approach. Revisiting a previous biosecurity application, we show that the theoretically correct approach can make a substantial difference. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
|
