Who are the winners and losers of choosing a high discount rate when doing cost-benefit analysis?

Expert Solution

Rahul Sunny answered 2 years ago

Does trade benefit everybody? If not, who are the winners and losers, and how does government...

Does trade benefit everybody? If not, who are the winners and losers, and how does government policy address the situation?

Why is the choice of social discount rate important in cost-benefit analysis? Critically examine when it...

Why is the choice of social discount rate important in cost-benefit analysis? Critically examine when it is most appropriate to use the (1) Social Opportunity Cost of Capital, (2) Social Rate of Time Preference, and (3) Ramsey approach for discounting in Cost- Benefit Analysis.

Who are the winners and losers in international trade? Discus the positives and negatives of a...

Who are the winners and losers in international trade? Discus the positives and negatives of a government placing barriers on international trade. With the current Covid-19 pandemic and the role of China in the pandemic, how do you believe the U.S.A. should structure its trade practices in regards to China? You will want to examine why the U.S. trades with China and is there a potential trading partner substitute for China, or should the U.S. continue developing the "Phase 2"...

Why is setting a discount rate important in the context of a cost benefit analysis?

Why is setting a discount rate important in the context of a cost benefit analysis? How...

Why is setting a discount rate important in the context of a cost benefit analysis? How do we know if the discount rate we use is appropriate?

Some have argued that in use for Cost-Benefit Analysis, a higher discount rate is ‘unfair’ to...

Some have argued that in use for Cost-Benefit Analysis, a higher discount rate is ‘unfair’ to future generations. Explain why this is not necessarily the case. Give an example to demonstrate.

Welfare economics looks at winners and losers through changes in consumer and producer surpluses. When the...

Welfare economics looks at winners and losers through changes in consumer and producer surpluses. When the U.S. imposed tariffs on steel imports my relatives from the Iron Range of Minnesota were happy about the tariffs. My husband's employer manufactures potato harvesting equipment. They are facing higher steel costs as a result of the tariffs. Using a welfare economics explain in economic terms, the reason some businesses liking the tariffs and other businesses not liking the tariffs. What is the overall...

What is the social discount rate? Explain why the social discount rate used in a benefit-cost...

What is the social discount rate? Explain why the social discount rate used in a benefit-cost analysis can have a large impact on the study’s conclusions. Discuss your answers in the context of a carbon tax.

When discounting future costs and benefits, anyone performing a benefit-cost analysis will use an interest rate...

When discounting future costs and benefits, anyone performing a benefit-cost analysis will use an interest rate or a discounting rate, which is shown as i in the following equation: Explain why the net present value of most projects rises when i decreases. (1) Imagine that a project will yield $20M in benefits immediately, but will result in $200B in damaged at the end of 500 years. Using a rate of i=0.03 or 3% to discount the future damages, calculate the...

When doing a CBA analysis is it important if the party paying the cost does not...

When doing a CBA analysis is it important if the party paying the cost does not enjoy the benefit?

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