Kossova T.V.,
Sheluntsova M.A. Evaluation of a Social Discount
Rate: Social Opportunity Costs of Capital Approach. // Economics of contemporary Russia 2014. ¹1
(64) Ñ.37-47.
The
paper continues our previous article «Social Discount Rate for Russia:
methodology, appraisal, regional differences» published in 2012 in this journal (¹ 3 (58)). The
present paper describes situations where a social opportunity cost of capital
approach should be used for evaluation of a social discount rate. We consider
international practice in applying this approach, regard methodology and make
calculations for Russia. It is revealed that the approach is relevant when a
social problem can be solved in both the public sector and the private sector.
It is also helpful for evaluation of budget performance. The necessity of
taking into account particular sectoral features of public investments is
substantiated. The results of calculations and differences found are explained.
Keywords: evaluation
of government investments performance, investment projects of the public
sector, social discount rate, and social opportunity cost of capital.
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