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This paper aims at assessing the temporal relationship that exists between the time reference of dynamic models with infinite and finite horizon. Specifically, comparing the optimal inter-temporal plans arising from an infinite-horizon model and a 2-period overlapping generations model in their stationary equilibria, I offer a straightforward way to determine the number of time periods of the former that may form a unit of time of the latter. In this way, I show that the theoretical length of a generation is an increasing function of the discount factor of the optimizing agent and I provide an economic rationale for such a relationship grounded on consumption smoothing.

RESUMEN El riesgo y el tiempo constituyen elementos centrales en el análisis económico, sobre los cuales típicamente se establecen supuestos predefinidos. Amplia evidencia experimental demuestra que estas preferencias no son exógenas, de modo que su heterogeneidad merece ser considerada en la modelización del comportamiento. Este artículo presenta evidencia con respecto a los factores determinantes y el grado de correlación de las preferencias individuales en ambos dominios: el riesgo y el tiempo, en un contexto de países en vías de desarrollo. El análisis involucra mecanismos experimentales de elicitación de preferencias, con constructos psicológicos y medidas autorreportadas. JEL: C01, C13, C34, C91. ABSTRACT Risk and time are transversal elements in the economic analysis, over which specific predefined assumptions are determined. On the contrary, extensive experimental evidence shows that these preferences are not exogenous, and their heterogeneity deserves to be determined in the modelling of behaviour. This paper presents evidence regarding the determinants of individual preferences in both domains: risk and time, in a context of developing countries. The analysis involves experimental mechanisms to elicit preferences with psychological constructs and self-reported measures. JEL: C01, C13, C34, C91. RESUMO O risco e o tempo são elementos centrais na análise econômica, sobre a qual normalmente são feitas suposições predefinidas. Extensas evidências experimentais mostram que essas preferências não são exógenas, portanto, sua heterogeneidade merece ser considerada na modelagem comportamental. Este artigo apresenta evidências sobre os fatores determinantes e o grau de correlação das preferências individuais em ambos os domínios: risco e tempo, no contexto de um país em desenvolvimento. A análise envolve mecanismos experimentais de elicitação de preferências, com construtos psicológicos e medidas autorreferidas. JEL: C01, C13, C34, C91.

Purpose- In thisstudy, the classical discounted cash flows (DCDF) model is revisited and the input factors of the model are analysed in details. Methodology- A model analysis approach is used in this research. The fundamental assumptions and the input factors (cash flows, time period, risk, discount rate, etc.) of DCF model are questioned. Findings- NPV and IRR are two methods using discounted cash flows and oftenly applied for capital budgeting decisions. The assumptions used in the DCF analysis are very strong and not fitting well in the reality of practical life. Economic life of the project may be much longer or shorter than projected in the analysis. The computation of discount rate bases on subjective interpretations (weights of capital components, cost of debt, opportunity cost of equity). Estimation of cash flows is the most critical input of the analysis but generally the least weighted factor (CF or FCF, inclusion of only relevant cash flows, depreciation and interest expenses, installments, credit sales and purchases, etc.). Risk adjustment can be made either on the discount rate or expected cash flows. Moreover, the analysis of international capital investments makes the issue more complicated. Also, the inclusion of real options adds an economic value to the analysis. Conclusion- DCF is not straight forward a capital budgeting model anyone can easily use. The application of DCF requires expertise and a picky view on details. Nevertheless, the acceptance of capital investments utilizing DCF method can not be independent of overall company strategic goals. Publisher's Version

The expediency of expanding the scope of application has been justified and methods of using the quality parameter of the company’s management in determining its value using the methods of revenue and comparative approaches have been proposed. In calculating the discount rate, instead of the expert assessment method used in practice, a method for calculating the management risk premium to the risk-free rate, which gives a more objective result, has been offered. The quality of management has been considered as one of the main factors of non-systematic risks, expressed in the socio-economic efficiency of the company, in the calculations of which it has been proposed to apply a resource-target approach. In a comparative approach to evaluating the value of a company, the quality of management has been used as one of the criteria for selecting similar companies.

Discount rate calculation is one of the most important stages of valuation process. This research provides description of discount rate economic substance, analysis of Russian business institutional environment and stock market which lead to problems of application of western discount rate calculation models. In conclusion the advantages and disadvantages of using Russian stock market data are stated.

The transformation of the accounting system is under the influence of those changes that characterize the development of new methods and approaches in the field of enterprise business management. Discounting is one such process, characterized by a number of features, including the determination of the rate and the choice of method of its application. The study of discount rate formation in the scientific literature is one of the most relevant. One of the reasons is the urgency of the issue due to changes in the regulatory documents regarding the accounting of long-term receivables at present value. Based on the analysis of the essence of the category of the term "discount rate" in the legislative documents, as well as among the approaches of foreign and Ukrainian scientists, it is determined that the discount rate is of interest and considers the risk associated with a particular cash flow. In addition, the most common methods for determining the discount rate are discussed. This allowed us to construct a mechanism for determining the discount rate for long-term receivables in the form of an appropriate algorithm, which is based on the "traditional" factors of the discount rate (inflation, profitability of money and risk factor for a specific enterprise), thus considering both the country’s financial market indicators as well as peculiarities of the entity's activities. The developed mechanism became the basis for determining the directions of changes occurring in the structure of financial reporting indicators in the accounting system. Such changes are reflected in the structure of incomes and expenses of the enterprise, because the accounting system recognizes the financial income or expense from the discounting of receivables in the form of amortization of the discount on the date of occurrence and throughout the maturity of each subsequent reporting date. The results of the study contribute to the development of both theoretical knowledge on determining the discount rate of long-term receivables, as well as practical aspects of forming a methodological approach to accounting for the components of the financial result of the enterprise.

RESUMO: O presente estudo busca responder às seguintes questões: há evidências de inconsistência intertemporal em decisões que envolvem o recebimento de valores monetários? As pessoas estão sujeitas ao efeito magnitude em decisões intertemporais que envolvem o recebimento de valores monetários? O objetivo deste artigo é identificar inconsistências em decisões intertemporais que envolvam o recebimento de recursos monetários em diferentes momentos. Parte-se do pressuposto que decisões intertemporais que envolvem montantes em dinheiro podem ser igualmente afetadas pelo efeito magnitude. Este é um achado robusto na literatura, tendo sido identificado em escolhas hipotéticas que envolvem dinheiro. Para abordar a questão, procedeu-se o cálculo da taxa de desconto implícita dos indivíduos e, em seguida, classificaram-se os indivíduos segundo o construto "impaciência". Foram utilizados cenários adaptados de Sutter et al. (2013). Na análise dos dados, foi empregado um teste não paramétrico para diferença de médias e identificadas as características mais relevantes dos respondentes da survey. Há evidências de comportamento inconsistente nas decisões intertemporais para os cenários apresentados, com ocorrência de impaciência crescente para intervalos de tempo deslocados para o futuro. Tal achado vai de encontro à literatura empírica sobre desconto hiperbólico. Paralelamente, observou-se a ocorrência do efeito magnitude, ratificando achados anteriores sobre quantias monetárias aplicadas a escolhas inter-temporais de longo prazo. ABSTRACT: This study seeks to answer the following questions: Is there evidence of intertemporal inconsistency in the decisions that involve the reception of monetary values? Are people subject to the magnitude effect of intertemporal decisions that involve the reception of monetary values? In doing so, this research will try to identify inconsistencies in intertemporal choices involving the reception of monetary resources at different times, grounded in the premise that these type of decisions could also be affected by the so-called magnitude effect, a robust finding that has been identified for hypothetical choices involving money. To address this issue, we calculated the implicit discount rate of individuals and then classified these individuals based on the construct of "impatience." Adapted scenarios from the work by Sutter et al. (2013) were used for this research, whose data analysis phase involved non-parametric testing to differentiate medians and identify the most relevant characteristics of respondents. There is evidence of inconsistent behavior in intertemporal choices for the scenarios presented, with the occurrence of growing impatience for the intervals shifted into the future, a finding that goes against those of the empirical literature on hyperbolic discounting. In addition, the occurrence of the magnitude effect was proved, confirming previous research findings on monetary amounts applied to long-term intertemporal choices. RESUMEN: El estudio busca contestar a las siguientes cuestiones: ¿hay evidencias de inconsistencia intertemporal en decisiones que involucran la recepción de valores monetarios? ¿Están sujetas las personas al efecto magnitud en decisiones intertemporales que involucran la recepción de valores monetarios? El propósito del artículo es identificar inconsistencias en decisiones intertemporales que involucran la recepción de recursos monetarios en distintos momentos. Se parte de la premisa de que decisiones intertemporales que involucren montos en dinero pueden igualmente afectarse por el efecto magnitud. Este es un hallazgo robusto en la literatura, habiéndose identificado en escogencias hipotéticas que involucran dinero. Para abordar la cuestión, se realizó el cálculo de la tasa de descuento implícita de los individuos y, en seguida, se clasificaron los individuos según el constructo "impaciencia". Se utilizaron escenarios adaptados de Sutter et al. (2013). En el análisis de los datos, se empleó la prueba no paramétrica para diferenciar medianas e identificar las características más relevantes de los respondientes de la survey. Hay evidencias de conducta inconsistente en las decisiones intertemporales para los escenarios presentados, con ocurrencia de impaciente creciente para intervalos desplazados para el futuro. Tal hallazgo va en contra de la literatura empírica acerca del descuento hiperbólico. En paralelo, se observó la ocurrencia del efecto magnitud, ratificando hallazgos anteriores sobre montos monetarios aplicados a escogencias intertemporales de largo plazo. RÉSUMÉ: La présente étude cherche à répondre aux questions suivantes : existe-t-il des preuves d'incohérence intertemporelle dans les décisions impliquant la réception de valeurs monétaires ? Les gens sont-ils soumis à l'effet de magnitude dans les décisions intertemporelles impliquant la réception de valeurs monétaires ? Le but de cet article est d'identifier les incohérences dans les décisions intertemporelles qui impliquent la réception de ressources monétaires à des moments différents. On suppose que les décisions intertemporelles impliquant des sommes d'argent peuvent être également affectées par l'effet de magnitude. Il s'agit d'une constatation robuste dans la littérature, ayant été identifiée dans des choix hypothétiques impliquant de l'argent. Pour résoudre le problème, le taux d'actualisation implicite des individus a été calculé, puis les individus ont été classés selon le construit « impatience ». On a employé des scénarios adaptés de Sutter et al. (2013). Dans l'analyse des données, on a utilisé un test non paramétrique pour la différence des moyennes et on a identifié les caractéristiques les plus pertinentes des répondants à l'enquête. Il existe des preuves de comportement incohérent dans les décisions intertemporelles pour les scénarios présentés, avec une impatience croissante pour les intervalles de temps décalés vers le futur. Cette constatation est conforme à la littérature empirique sur l'actualisation hyperbolique. Dans le même temps, on a observé l'effet de magnitude, en confirmant les résultats antérieurs sur les montants monétaires appliqués aux choix intertemporels de long terme.

Food security is central to the state's economic security system and is an important component of its sovereignty. Attracting financial resources by agricultural producers on favorable terms has a direct impact on improving agricultural infrastructure, product quality management systems, modernization of means of production, etc., which contributes to food security in terms of its main components: food availability and food security. At the same time, cheaper consumer loans for the population can strengthen an equally important element of food security – the affordability of food. The object of the study is the processes of food security regulation of the country due to changes in the discount rate of the National Bank. The subject of the study is a set of theoretical, methodical and practical aspects of the monetary policy of the National Bank of Ukraine and their impact on the formation of food security. The purpose of the article is a comprehensive analysis and assessment of the impact of monetary policy of the National Bank of Ukraine, which is recently reflected in lowering the discount rate on food security, which is expressed in the availability of credit resources to meet consumer demand and modernize agricultural enterprises. The analysis of the discount rate and interest rates for loans on different periods, which were given to the enterprises of Ukraine, was performed. The authors propose to improve the financial component of the integrated food security mechanism, which aims to ensure the use of economic levers and create conditions for attracting financial resources for the functioning of the food security system by forming a system of multi-channel financing.

Resumen El objetivo de este artículo es conocer qué técnicas utilizan las medianas empresas para evaluar sus proyectos de inversión, y de esta manera determinar si existe una brecha entre la teoría y la práctica. Además, se buscó identificar qué características de la empresa y de su gerente general influyen en el uso de estas técnicas. Para esto se elaboró y aplicó una encuesta a 126 medianas empresas del departamento de Piura (Perú). A partir de lo anterior, se encontró que gran parte de la muestra utiliza al menos una técnica donde los flujos de caja son descontados, lo cual es avalado por la teoría; por lo tanto, se evidencia que la brecha entre teoría y práctica no es muy amplia. Abstract The objective of this article is to know what are the techniques used by medium-sized companies to evaluate their investment projects, and in this way to determine if there is a gap between theory and practice. In addition, we sought to identify which characteristics of the company and its general manager influence the use of these techniques. For this, a survey was elaborated and applied to 126 medium-sized companies in the department of Piura (Peru). Based on this, it was found that a large part of the sample uses at least one technique where cash flows are discounted, which is supported by the theory; therefore, it is evident that the gap between theory and practice is not very wide. Resumo O objetivo deste artigo é conhecer as técnicas que as empresas de médio porte utilizam para avaliar seus projetos de investimento e, assim, determinar se existe uma lacuna entre teoria e prática. Além disso, procurou-se identificar quais características da empresa e seu gerente geral influenciam o uso dessas técnicas. Para tanto, foi elaborada uma pesquisa e aplicada a 126 empresas de médio porte do departamento de Piura (Peru). Pelo exposto, constatou-se que grande parte da amostra utiliza pelo menos uma técnica em que os fluxos de caixa são descontados, o que é suportado pela teoria; portanto, é evidente que a lacuna entre teoria e prática não é muito ampla. Clasificación JEL: G31.

The current study examines the association of individual hoarding levels with temporal discounting of different commodities during the COVID-19 pandemic. Based on their hoarding level, participants were assigned to the Hoarding Group (HG) or the Non-Hoarding Group (NHG). Participants performed two delay discounting tasks: a traditional task with monetary options and a modified task, where money was replaced with disposable surgical masks, a needed commodity during the pandemic. Results revealed a stronger preference for immediate commodity, therefore a higher discount rate, when evaluating surgical masks compared to money in the whole sample, and an overall higher tendency in discounting both type of rewards in the NHG compared to the HG. Moreover, non-hoarders discounted money significantly more than hoarders, while no significant differences were detected in the surgical mask version of the task. Possible explanations for this result are discussed in the light of a situational frame that makes salient the notion of scarcity, like the one induced by the COVID-19 pandemic. The hoarding dimension of cluttering was found to be the only dimension to significantly correlate with the discount rate on surgical masks. Altogether, these findings shed light on the role of general hoarding level and specific hoarding dimensions on intertemporal preferences with different commodities by contributing to the theoretical debate about impulsivity in hoarders’ behavior. Furthermore, the present results help to understand the general population’s preferences during times of crisis, thus contributing to the investigation of the effects of COVID-19 on consumers’ behavior. © 2021 Cannito, Anzani, Bortolotti, Palumbo, Ceccato, Di Crosta, Di Domenico and Palumbo.

The design and operation of transportation systems, as with any large complex technical system, are marked by indetermination—risks and uncertainties (scientific/methodologic and/or socio-economic). This paper analyzes the occurrence and consequences of uncertainties, defined as completely unknown random events (“unknown unknowns”), on transportation system performances. Interest in the topic is justified by the considerable value and long life of transportation system components. In order to reduce the effects of uncertainties, a holistic approach to all technical infrastructures in society, regardless of the flow category (material, energy, information), is necessary. Technological progress and changes in territorial activity systems historically confirm the dynamism of the competition and complementarity relations between civil and industrial infrastructures and transport infrastructures, as well as among different modal transport/traffic infrastructures. Declining discount rates are applied to compensate for the effects of uncertainties on investment project opportunities on long time horizons. There is no unanimous agreement on the discount rate values. Unforeseen exogenous events are considered differentiated/non-systemic or undifferentiated/systemic uncertainties. They can have significant consequences on the performance of a transport system, including a change in the transport market share. Therefore, an adaptive policy is required to reduce the methodological/scientific and socio-economic uncertainties that affect the design and operation of any transportation system.

Background: We aimed to explore the correlation between the time and risk preferences and the smoking behavior of adult population in western Iran. Methods: Overall, 792 individuals with the age of 35 to 65 yr participating in an ongoing national cohort study (Persian Cohort) were approached to complete a pre-structured questionnaire in 2017. Time preferences were measured using a standard choice-based method. The individuals' discount rates were identified by questions that offered binary monetary choices on immediate future and distant future, by making trade-offs between them. Probit regression model was used to investigate the relationship between time preferences and smoking when controlling for demographic and socioeconomic variables. Results: Time and risk preferences had statistically significant direct correlations with smoking. A unit increase in discount rate was associated with a 4.4% percentage point increase in the likelihood of being smoker. A present-biased individual had 5.7% percentage points lower likelihood of being smoker. Moreover, a unit increase in willingness to take the risk increased the likelihood of being a smoker by 1.5% percentage points. Conclusion: Time and risk preferences are important determinants of smoking behavior. These factors should be considered in designing effective prevention and control programs. Policies that increase the immediate costs of cigarette smoking or the immediate benefits of smoking cessation are likely to have a greater impact on reducing the prevalence of cigarette smoking.

A growing literature has highlighted the variables and parameters that most affect the technical feasibility and the economic viability of the measures meant to improve building energy efficiency. This paper discusses the results of a literature review, which focuses on the studies that deal with three economic parameters: the price to be paid for the energy supply, the energy inflation rate, and the discount rate used to convert future cash flows to a present value, namely, an upfront lump-sum equivalent. A specific co-occurrence analysis of terms is performed on the titles and abstracts of the examined documents. The representation of the results allows recognizing several significant clusters and network relationships. Moreover, that literature review enables to identify two well-established research strands. The first involves the relationship between energy prices and the profitability of efficiency-related investments. The second research branch points at the pivotal role played by the discount rate when evaluating the investments in energy-efficient measures.

Discounting has always been a controversial subject among economists and philosophers yet discounting practice remained an essential element of any public policy. The purpose of this paper is to argue against using the practice of discounting in Cost-Benefit analysis for large engineering/public projects particularly aimed at mitigating the effects of global warming, as it creates bias against the future generation. Using systems thinking approach the paper has counter argued against all the three arguments, used to justify discounting, i.e., pure time preference, the opportunity cost of capital, and risk. The paper has shown intuitively that both the consumption- and the investment-based rationales used to justify discounting are in conflict when we take the holistic approach to the environment. The paper clearly is on a topic of great significance for environmental economists and environmental policy specialists. The perspective taken in the paper is a thought-provoking one with the relevance of “systems thinking” for the discounting debate.

The critical analysis of the net present value, which represents one of the traditional most frequently used indicators of financial effectiveness of investment projects has been proved. Net present value is also considered as a base for fair value estimate of intangible assets on a company’s balance sheet. Within the analysis the answers to questions of every investor are given: how to correctly assess the net present value, what discount rate is better applied for cash flows and how to estimate the discount rate, whether an investor should immediately reject the project having a negative net present value, how to estimate weighted average cost of capital correctly and others.

The article deals with to the critical analysis of the internal rate of return, which represents one of the traditional most frequently used indicators of financial effectiveness of investment projects, allowing investors to sense relative yield from investing in a project. Within the analysis the author identifies deficiencies of applying the internal rate of return and offers alternative means of practical evaluation of relative yield from investing in a project based on modelling of an investor’s behavior related to expected schedule of return invested capital.

A growing literature has focused on the economic viability of energy retrofit in buildings. As regards the valuation tools, the Life-Cycle Cost (LCC) method has established itself among the leading approaches. The results are usually affected by a core of influential, uncertain parameters: energy supply cost and energy price changes. Monte Carlo (MC) simulation may be integrated with LCC analysis to deal with that uncertainty. In this study, we apply an LCC and MC-based analytical model to a case study. Several retrofit scenarios are defined to improve the poor energy performance of a public housing building. The less investment-intensive alternative enable to achieve a 27% energy saving in comparison to the building as is, while the more investment-intensive alternative allows reducing consumptions by about two-thirds. We find that the scenarios characterized by lower upfront costs are more likely to show lower LCCs, regardless of the energy price. The novelty of this study lies in the fact that we show the prominence of the discount rate, which is a remarkable source of additional uncertainty. We find that the discount rate affects the results four times as much as the energy price; therefore, its estimation is critical to the soundness of thermo-economic evaluations.

Indonesia's natural forest has been persistently declining, even with the fastest rate in the world, regardless of various efforts to stop the decline or at least to reduce the rate significantly. At the same time, development of plantation forest has been very slow. Amongst the various causes of the natural forest loss that have been identified, financial nonprofitability was not one of them. That being said, the fundamental reason as to why utilization of natural forest for timber production will not survive in the long run is because of financial nonprofitability. In order for a business to stay in the industry of the natural forest utilization, the government should provide financial incentives using public's money. Hence, the public support for the forestry is vital for the survival of the industry?. However, improper implementation of forestry laws can have damaging impacts to the public's perception and support. Moreover, the five policies, namely forest land establishment, fees, and royalties, log export ban, certification, and forest management unit establishment, which have failed to deliver sustainable natural production forests, are shortly discussed. Finally, the more appropriate approach of natural forest utilization is basically not as a sustainable forest management but rather as the optimal timber mining, which consequently requires different set of policies.

The Public-Private Partnership is also used, at international level, to carry out interventions in urban variant on areas or buildings that, by enhancing the value of (private) real estate properties, guarantee an economic return for the local community through an extraordinary contribution of urbanization (ECU) paid to the Administration by the private entity. The Italian Regions and Municipalities that have regulated the ECU calculation adopt a procedure of transformation value that does not specify either the duration or the risk-related rate of return of the real estate operation, which are essential factors for its balanced quantification. The paper defines a procedure that integrates methodologies, diffused in practice and literature, with official datasets to determine objectively the ECU, also evaluating its sensitivity to the critical variables of the transformative process. The proposed procedure is easy to apply and adaptable to a wide range of interventions and to different phases of the public-private (re)negotiation. It is in line with the Italian case and it is consistent with the international evaluation standards (IVS), having a general validity in the estimation field.

В данной статье рассматривается, как моральная ответственность может быть вписана в редукционизм Дерека Парфита. Значимой проблемой в теории Парфита является несоответствие бессубъектности редукционизма следующим из него же этическим взглядам. Поскольку редукционизм предполагает отрицание важности тождества личности, которое обычно представляется условием моральной агентности и моральной ответственности, сохранение последних представляет специальную проблему для этического аспекта системы Парфита. В статье я рассмотрю, какие аспекты теории Парфита позволяют преодолеть эти проблемы. Я утверждаю, что моральная ответственность в теории Парфита может быть задана через комбинацию R-отношения, учетной ставки и теории рациональности., This article examines the ways in which moral responsibility might be fitted in Derek Parfit's reductionism. An important problem of Parfit’s theory is the reductionists’ subjectless metaphysics being resistant to its ethical implications. Since Reductionism implies the denial of the importance of personal identity which is usually seen as a condition of moral agency and moral responsibility, the preservation of the latter poses a special challenge to the ethical aspect of Parfit’s system. In this article, I will consider what aspects of Parfit's theory help to overcome these problems. I argue that moral responsibility in Partfit’s theory may be set through a combination of R-relation, discount rate, and the theory of rationality.

Diskontna stopa, pri ostalim nepromenjenim uslovima prinosnog modela procene, predstavlja presudan faktor u proceni vrednosti kapitala primenom metode diskontovanja projektovanih neto novčanih tokova. Metod diskontovanja je opšteprihvaćeni metod u najvećem broju zemalja. Nerazvijenost tržišta kapitala u Republici Srbiji, u prvi plan, stavlja obračun diskontne stope metodom „zidanja“, za razliku od razvijenih zemalja u kojima se, najčešće, primenjuje CAPM metod. U radu se analizira uticaj visine diskontne stope na procenjenu vrednost kapitala primenom metode „zidanja” diskontne stope, ali i uticaj različitih vrsta beta koeficijenata i premija za rizik na visinu diskontne stope i procenu vrednosti kapitala. Naime, primena CAPM metode ne podrazumeva napuštanje primene prinosne metode, ali se elementi diskontne stope utvrđuju na bazi tržišnih parametara: sistemskog rizika i visine tržišne premje za rizik. Na ovaj način, smanjuje se subjektivnost procenitelja prilikom izračunavanja diskontne stope, budući da CAPM model polazi od pretpostavke da se specifični rizik preduzeća može anulirati diversifikacijom porftolia. Potreba za procenom vrednosti kapitala korišćenjem diskontne stope „ne gasi se“ završetkom procesa privatizacije, budući da procena može biti zahtevana od strane samih menadžera u preduzeću, potencijalnih investitora, u slučajevima stvaranja poslovnih kombinacija, prilikom prodaje preduzeća i sl. . Raširena primena metode „zidanja“ diskontne stope u Republici Srbiji može dovesti do grešaka u proceni, bilo slučajnih, bilo namernih, što utiče na realnost procenjene vrednosti kapitala. Do grešaka dolazi usled primene neadekvatne stope prinosna na ulaganja bez rizika, premije za rizik ulaganja u zemlju i pogrešnog utvrđivanja specifičnog rizika preduzeća. Poboljšani poslovno-investicioni ambijent u Republici Srbiji zahteva izmenu visine premije za rizik ulaganja u Republiku Srbiju, smanjujući visinu diskontne stope, što rešava problem potcenjene vrednosti kapitala. Pomenuto poboljšanje dovodi do osnivanja sve većeg broja start-up preduzeća, pa se postavlja pitanje procene vrednosti njihovog kapitala, s obzirom na visok nivo rizika od bankrotstva i nelikvidnosti. Dodatni rizik smanjuje projektovane neto novčane tokove i uvećava tržišni rizik, što povećava visinu diskontne stope i smanjuje projektovanu vrednost kapitala mladih preduzeća. Discount rate, business valuation, discounting net cash flows valuation, method of “building” discount rate, beta coefficient, risk premium, country risk premium of Republic of Serbia, CAPM method, start up companies Abstract (or resume) in the language of the text: The discount rate, in the case of other unchanged conditions of the discounted net cash flow model valuation, is a crucial factor in the valuation of capital using the method of discounting projected net cash flows. The method of discounting is a widely accepted method in most countries. Undeveloped capital market in the Republic of Serbia primarily focuses on calculating the discount rate by the method of "building", as opposed to the developed countries in which the CAPM method is the most commonly applied . The paper analyzes the impact of the discount rate on the estimated value of capital using the method of "building” a discount rate, as well as the impact of different types of beta coefficients and premiums for the risk on the discount rate and capital valuationn. Namely, the CAPM method does not imply the abandonment of the discounting projected net cash flowmethod, but the elements of the discount rate are determined on the basis of market parameters: systematic risk and level of market risk. In this way, the subjectivity of the valuator decreases when calculating the discount rate, since the CAPM model assumes that the specific risk of an enterprise can be neutralized by the diversification of porftolio. The need to estimate the value of capital using the discount rate "do not terminated" by the end of the privatization process, since the evaluation may be required by the managers themselves in the enterprise, potential investors, in cases of creating business combinations, when selling the company, etc. . Expanded use of the method of "building" the discount rate in the Republic of Serbia can lead to estimation errors, whether accidental or intentional, which affects the reality of the estimated value of capital. The mistakes are due to the application of an inadequate risk- free rate, the country risk premimum and the incorrect determination of the specific risk of the enterprise. Improved business and investment environment in the Republic of Serbia requires a change in the amount of the country risk premium in the Republic of Serbia, reducing the discount rate, which solves the problem of underestimation of the value of capital. According to mentioned improving, an increasing number of startup companies are founded, so the question of valaution of their capital is raised, according to the high level of risk of bankruptcy and illiquidity. Additional risk reduces projected net cash flows, increases market risk and increases the discount rate, which reduces the projected value of the capital of the start ups

This study investigates the short-run responses and long-run performances of seven industries’ stock indices with discount rate changes in the firms listed in the Pakistan Stock Exchange (PSE) between 2009 and 2018. The results indicate that short-run returns react positively to discount rate reduction, excluding the oil industry and vice versa. Therefore, long-term performance responds favourably with a reduction in the discount rate. Discount rate changes affect the apparel industry the most, while the oil industry is the least on the list. This study serves potential investors for their returns against investment among these industries. Furthermore, it works as a guideline for regulators and policymakers to manage fluctuations for a stable capital market.

India has experienced exponential growth in sales of two-wheelers due to their high fuel economy and easy manoeuvrability in congested traffic conditions. Understanding Indian consumers & rsquo; valuation of fuel economy while purchasing a two-wheeler is crucial to evaluate whether Indian two-wheeler buyers are myopic with regards to future fuel costs. However currently, there exists no quantification of the value that Indian two-wheeler buyers ascribe to fuel economy. We address this gap in the literature by analyzing revealed preference survey data from more than 8000 respondents across India, who purchased a new two-wheeler in 2018. Discrete choice models, including standard conditional logit and flexible mixed logit, are used to infer estimates of the discount rate that Indian consumers apply to obtain the present value of future operating cost at the time of two-wheeler purchase. The results of conditional logit indicate that the annual discount rate is below 10% for Indian two-wheeler buyers with monthly household incomes above 15,000 rupees (-US$215 in 2018;-73% of the sample). Mixed logit suggests substantial heterogeneity in discount rates across respondents at a given income level. The median of the mixing distribution is close to the conditional logit estimates, which leads to a conclusion that an average Indian two-wheeler buyer ascribes a high value to future fuel cost savings. Besides, our analysis provides various insights into Indian consumers & rsquo; preferences. For instance, style/looks, fuel economy, comfort, and brand (in decreasing order) are the top four factors that influence two-wheeler purchase decisions of Indian consumers. (c) 2021 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).

This paper studies the increasing convex ordering of the optimal discounted capital allocations for stochastic arrangement increasing risks with stochastic arrangement decreasing occurrence times. The application to optimal allocation of policy limits is presented as an illustration as well.

La función de todo software es modelar situaciones que se asemejan a la realidad, con el fin de encontrar las condiciones más viables para desarrollar un proyecto minero, lo cual implica incrementar ingresos y reducir costos mediante la toma de decisiones. En esta industria los inversionistas buscan obtener los ingresos más altos a la hora de explotar los recursos del subsuelo, con el objetivo de lograr el retorno a la inversión. En el presente artículo se evalúa la tasa de descuento y el costo de remanejo de un depósito mineral hipotético de oro y cobre, utilizando el software SIMSCHED DBS. A su vez se hace una revisión bibliográfica la cual permite dar claridad a los conceptos utilizados. Con base a las simulaciones realizadas con las dos variables económicas se pretende seleccionar el valor presente neto (VPN) más óptimo para los flujos futuros. The function of all software is to model situations that look like reality, in order to find the most viable conditions for developing a mining project, since in these what is sought is to increase revenue and reduce costs by making better decisions. In this industry investors seek to obtain the highest income in exploiting underground resources, with the aim of achieving return on investment. In this article the discount rate and the cost of rehandling of a mineral deposit hypothetical gold and copper is evaluated using the SIMSCHED DBS software. In turn a search for information, which can give clarity to the concepts with which you are working, is done. Based on the simulations performed with the two economic variables you can select the optimal net present value (NPV) for future flows.

Purpose This paper aims to examine how the temporal distance can influence the effect of the scarcity message. To demonstrate this effect, the authors use the limited-quantity flash sales and compare two types of mixed promotion method comprising discount rate and limited quantity. Design/methodology/approach The results of the experiment reveal that consumers in the temporally distant condition have a relatively high-level construal of the limited-quantity flash sales and are more likely to value desirability (discount rate) over feasibility (limited quantity). Findings When the expected value is identical, consumers prefer limited-quantity flash sales with smaller limited quantity but higher discount rates. However, consumers in the temporally near condition have a relatively low-level construal of the limited-quantity flash sales and are more likely to value feasibility (limited quantity) over desirability (discount rate). Originality/value When the expected value is identical, consumers prefer limited-quantity flash sales with lower discount rates but larger limited quantity.

Optimization of large systems in economy and power generation produces multi-dimensional degenerate solutions [1] , [2] . This implies the need to deal with very serious mathematical complications. On the other hand, it allows regarding future development of power generation as combined operation of nuclear power plants (NPPs), power plants (PPs) fueled with coal and gas-fueled power plants. Systems optimization of NPP parameters is necessary in order to accomplish this goal. If PP of certain type fails to be included in the optimal plan of development of electric power generation system it means that by definition is it not optimal and, hence, it is not competitive. NPP can succeed to be included in the optimal plan of development of electric power generation system. In such case, if in locally-optimal plans of development of electric power generation system the nuclear power units (NPPs) put into operation earlier interrupt after operation under load during certain period generation of power (power supply) to “zero” for the time interval exceeding the time period required for implementation of scheduled maintenance operations it signifies that the chosen parameters and operation modes are not optimal. Such NPPs will demonstrate competitiveness only during time intervals when the electric power system allows them to be operated under load. If nuclear power units (NPPs) put into operation during earlier stages stop their work (are removed from operation) before expiration of the design service life for any reasons which are not associated with “moral” ageing of equipment it also signifies that the chosen parameters and operation modes are not optimal. It signifies as well the failure of these NPPs to demonstrate their competitiveness. NPP which is included in the optimal plan of development of electric power generation system and was operated without interruptions under load during the design service life can be regarded as competitive. Since, as it was demonstrated by the performed systems optimization calculations of power generation in Russia, the examined options of NPPs with fast reactors (SVBR-100, BN-1200 (three-circuit), BREST-1200) appeared to be included not into all optimal plans, there is a place for certain doubts that the chosen parameters of the NPPs and the associated nuclear fuel cycles (NFCs) are not competitive although strenuous multi-parameter research in this direction is ongoing during already several decades.

Many studies have looked at how individual player traits influence individual choice in the repeated prisoner’s dilemma, but few studies have looked at how the average traits of pairs of players influence the average choices of pairs. We consider cognitive ability, patience, risk tolerance, and the Big Five personality measures as predictors of individual and average group choices in a ten-round repeated prisoner’s dilemma. We find that a pair’s average cognitive ability measured by the Raven’s IQ test predicts average cooperation rates robustly and average earnings more modestly. Higher individual cognitive ability also predicts a greater probability of sustaining cooperation in the second round, suggesting that positive reciprocity is more likely among players with higher Raven’s scores. Openness is the only control variable that predicts first-round cooperative behavior.

Governments throughout the world are turning to public‒private partnerships (PPPs) as a means of providing new infrastructure. The decision to adopt a PPP over conventional government procurement is usually based on a value for money (VfM) appraisal, but this analysis is conducted differently in different countries. This article describes the correct way to conduct VfM analysis if the goal is to minimize the present value of the costs to the Treasury and if the goal is to maximize social welfare. It then compares the documented methodologies of nine specialist PPP units. It identifies four ways in which these methodologies depart from either of the correct approaches, and shows how each departure favors the PPP option. Finally, it shows how the UK approach might be augmented to determine the best value to society.

Application of discount rate in finance and accounting is founded on the concept of time value of money. Discounted cash flow model is widely used for asset valuation under the International Financial Reporting Standards (in abbreviation, IFRS). The discount rate applied in valuation models normally is the best rate of return that investors would earn alternative investments. With emergence of ecological economics as a separate branch of economics, the concept of ecological (or in other words, environmental discount rate) has been elaborated. Muller (2013) in his paper ‘The Discounting Confusion: an Ecological Economics Perspective’, argues that traditional discounting can undermine long-term sustainability of the economy. In his work, Frank G. Muller considered adjusting the traditional discount rate in order to arrive at an environmental discount rate, which would help to ensure the sustainability of the economy. Hannon (2001) and Perrings (2001) in their paper ‘An Introduction to Spatial Discounting’ consider another variation of the discount rate - spatial discount rate. Spatial discount rate represents the rate at which the diffusion of environmental effects of economic activities is discounted over space. By February 2016, neither the application of environmental nor spatial discount rates under IFRS has been considered. The purpose of this paper is to analyse the implications that environmental and spatial discounting would have for the application of discounted cash flow model according to IFRS. The research methods applied are methods of economic analysis and synthesis.

This case study is based on actual project and consultancy work, balancing real lifeexperience with a review and analysis of empirical and theoretical literature. Tidal stream energy(TSE) is still a nascent technology, but with much better predictability than the classical alternativesof sun and wind. Being still more expensive than other renewable technologies, it is important tofind locations in order to initiate a learning process to bring down cost to a competitive level as itwas the case for solar and wind technologies. Locations for an initial phase of operation of TSE smallislands in the Philippines (and other Asian countries) were found to be most suitable, becauseexpensive and polluting diesel generators can be replaced and a reliable 24 h electricity supply canbe established. Different appraisal methods in different scenarios show that under normalcircumstances a hybrid combination of TSE, solar energy and battery storage is financially andeconomically superior to existing fossil energy based power stations as well as to solar energy alone.However, the traditional financial approaches are not always reliable, in spite of superficialmathematical exactness, and the parameters used must be analysed carefully, especially if we dealwith innovative technologies with fast changes. In times of global warming we must also includethe controversial issue of evaluating damages from greenhouse gases if choosing fossil alternatives.When evaluating and planning renewable technologies, engineering know-how is important, butinsufficient. Since financing is a crucial issue for most renewable technologies with high front loadedcost and long amortisation periods, a thorough and trustworthy financial and economic analysis isnecessary not only to avoid financial failure later on, but also to attract stakeholders like privateinvestors, banks and government institutions to support a still unknown technology.

International Conference on Industrial Engineering and Industrial Management (13th. 2019. Gijón)

La valoración de empresas es una actividad cada vez más importante en un contexto globalizado, con empresas más dinámicas e internacionalizadas en busca de la creación de valor. La internacionalización afecta cada vez más a los países en desarrollo que se ven impelidos a tratar con operaciones de compra-venta internacionales y demandas de sus partners cada vez más especializadas, como es el caso de Colombia. Normalmente el método utilizado en la valoración es el descuento de los flujos de efectivo, lo que precisa el uso de tasas de actualización ad-hoc. Este trabajo tiene como objetivo principal analizar la aplicación de la tasa de descuento en la actividad de valoración de empresas en Colombia. Para ello se lleva a cabo un estudio exploratorio de carácter empírico, sobre una encuesta realizada a 32 expertos colombianos en valoración de empresas. Nuestras principales conclusiones revelan que los valoradores colombianos siguen pautas comunes a los valoradores internacionales, aunque se observa una gran dispersión a la hora de estimar la tasa de descuento. De esta forma el trabajo realizado puede ser de interés no solo para los profesionales de la valoración, sino también para los académicos y empresarios que estén inmersos en este proceso, ya que ofrece información sobre la realidad colombiana en un contexto internacional, Firms' valuation is an increasingly important activity in a globalized context with more dynamic and internationalized companies in search of value creation. Internationalization is increasingly affecting developing countries that are forced to deal with international M&A and the requirements of their increasingly specialized partners, such as is the case of Colombia. Normally, the use of ad-hoc update rates is required in the process. The main goal of this work is to increase our knoledge ion the use of the discount rate in the business valuation activity in Colombia. For this purpose, an exploratory study based on a survey of 32 Colombian experts in business valuation is included. Our main conclusions reveal that Colombian experts behave similarly to international valuers, although there is a large dispersion in the estimation of the discount rate. In this way, the research carried out can be of interest not only for professionals but also for academics and managers who participate in this process to offer information about the Colombian reality in an international context

Рассмотрены основные критерии оценки стоимости жизненного цикла продукции. Перечислены основные задачи, решением которых занимается оценка стоимости жизненного цикла. Проанализированы основные расходы, затраты и компоненты, которые включены в формулу расчета стоимости жизненного цикла продукции, параллельно выступающие и критериями оценки., Assessment of the cost of the product life cycle is an acute issue of modern management, because the economic efficiency and expediency of acquiring or developing a new product / product depends on the accuracy of its calculations. The article describes the main criteria for assessing the cost of the product life cycle. The main tasks are listed, the solution of which is the life cycle cost estimation. Analyzed the main costs, costs and components that are included in the formula for calculating the cost ofthe product life cycle, in parallel acting and evaluation criteria.

Life-cycle cost analysis (LCCA) has been defined as a method to assess the total cost of a project. It is a simple tool to use when a single project has different alternatives that fulfill the original requirements. Different alternatives could differ in initial investment, operational and maintenance costs among other long term costs. The cost involved in building a bridge depends upon many different factors. However, long-term cost need to be considered to estimate the overall cost of the project and determine its LCC. Without watchful consideration of the long-term costs and full life-cycle costing, current investment decisions that look attractive could be resulting in a waste of economic resources in the future. This research is focused on short and medium span bridges (between 30 ft and 130 ft) which represents 57% of the NBI INDIANA bridge inventory. Bridges are categorized in three different groups of span ranges. Different superstructure types are considered for both concrete and steel options. Types considered include: bulb tees, AASHTO prestressed beams, slab bridges, prestressed concrete box beams, steel beams, steel girders, folded plate girders and simply supported steel beams for dead load and continuous for live load (SDCL). A design plan composed of simply supported bridges and continuous spans arrangements was carried out. Analysis for short and medium span bridges in Indiana based on LCCA is presented for different span ranges and span configurations. Results will help designers to consider the most cost-effective bridge solution for new projects, resulting in cost savings for agencies involved.

Energy price is related to more than half of the total life cycle cost of asphalt pavements. Furthermore, the fluctuation related to price of energy has been much higher than the general inflation and interest rate. This makes the energy price inflation an important variable that should be addressed when performing life cycle cost (LCC) studies regarding asphalt pavements. The present value of future costs is highly sensitive to the selected discount rate. Therefore, the choice of the discount rate is the most critical element in LCC analysis during the life time of a project. The objective of the paper is to present a discount rate for asphalt pavement projects as a function of interest rate, general inflation and energy price inflation. The discount rate is defined based on the portion of the energy related costs during the life time of the pavement. Consequently, it can reflect the financial risks related to the energy price in asphalt pavement projects. It is suggested that a discount rate sensitivity analysis for asphalt pavements in Sweden should range between –20 and 30%. First published online: 18 Dec 2015

A comprehension theoretical and practical problems of project efficiency calculations is initiated in the article. The calculation of the net discounted income for different cash flow projects on given examples is presented., В статье положено начало для осмысления теоретических и практических проблем расчетов эффективности проекта. На примерах приведен расчет чистого дисконтированного дохода для разных по характеру вариантов денежного потока проектов., У статті започатковано осмислення теоретичних та практичних проблем розрахунків ефективності проекту. На прикладах наведений розрахунок чистого дисконтованого доходу для різних за характером варіантів грошового потоку проектів.

Mineral deposits (among which non-ferrous metals take a leading place) are situated on the territory of our planet rather unevenly, and often in out-of-the-way places. Nuclear power (particularly, transportable nuclear power plants) provides the new possibilities of power supply, which is very important for deposits' development. This article shares the economic aspects of forecasting in the field of power development (in particular, nuclear power on the basis of transportable nuclear power plants). Economic barriers of development of innovative nuclear technologies are considered on the example of transportable nuclear power plants. At the same time, there are given the ways of elimination of such barrier to development of this technology as methodical absence of investigation of a question of distribution of added cost between producers of innovative equipment and final product. Addition of new analytical tool (“business diagonal”) is offered for a method of definition of economically efficient distribution of added cost (received as a result of introduction of innovative technologies) between participants of production and consumption of atomic energy within the “economic cross” model. There is offered the order of use of method of cash flows discounting at calculations between nuclear market participants. Economic methods, offered in this article, may be used in forecasting of development of other energy technologies and introduction of prospective energy equipment.

Empirical research on preferences about the formation of electoral coalitions is focused on ideologically proximate parties. In this paper I argue that electoral coordination also takes place between ideologically nonproximate parties, but with similar derived preferences. To test this argument I examine the case of an electoral coalition between antagonistic parties, Solidaritat Catalana —formed by carlistas, regionalistas and republicanos— in the 1907 national election. I employ a model of electoral coordination. The empirical analysis relies on information about Solidaritat Catalana, the electoral law, and the results of the 1901, 1903, 1905 and 1907 national elections and the March 1907 province election. La investigación empírica sobre las preferencias favorables a la formación de coaliciones electorales se ha centrado en partidos con afinidad ideológica. En este artículo argumento que la coordinación electoral también se produce entre partidos ideológicamente distantes con preferencias derivadas afines. Para comprobar estos argumentos recurro al estudio de una coalición electoral entre partidos antagonistas. Analizo la participación de Solidaritat Catalana —integrada por carlistas, regionalistas y republicanos— en las elecciones generales de 1907, por medio de un modelo de coordinación electoral. El análisis empírico recurre a información de la articulación de Solidaritat Catalana; la legislación electoral; las elecciones generales de 1901, 1903, 1905 y 1907, y las elecciones provinciales de marzo de 1907.

RESUMEN: El objetivo de este Trabajo Fin de Máster es realizar la valoración de una empresa y hallar el valor de las acciones de la misma. En base a la valoración se emitirán unas recomendaciones que puedan resultar útiles a múltiples usuarios como, por ejemplo, potenciales compradores de la empresa, accionistas actuales o potenciales inversores. La valoración se llevará a cabo por el método de descuento de flujos de caja y el método de múltiplos de empresas comparables. La empresa analizada será XPO Logistics, Inc., entidad de origen norteamericano, que cotiza en la bolsa de Nueva York, considerándose como la décima empresa de transporte más grande del mundo. Una vez realizada la valoración por descuento de flujos de caja, el proceso conducirá a la obtención de un rango de precios objetivos que se compararán con la cotización de XPO en el mercado de valores y se contrastará con las recomendaciones de los analistas financieros. Dada la incertidumbre y la volatilidad de los mercados, los resultados se calcularán en base a tres hipótesis de crecimiento: adversa, central y favorable. A su vez, la valoración por múltiplos se llevará a cabo para contrastar las conclusiones sacadas en la valoración por descuento de flujos de caja, y, por consiguiente, se harán las recomendaciones en función del resultado obtenido. La línea temática desarrollada, junto con los resultados alcanzados, facultará al lector para tomar las decisiones de inversión adecuadas, teniendo en cuenta los diferentes escenarios considerados y la comparativa que se efectuará con las recomendaciones de un consenso de analistas financieros profesionales. En definitiva, este Trabajo Fin de Máster se propone aportar una base sólida para fundamentar las decisiones financieras de sus destinatarios, lo cual cobra una especial trascendencia en el contexto financiero actual, en el cual muchas grandes empresas soportan un crecimiento considerable, y, sobre todo, las grandes entidades. ABSTRACT: The objective of this Final Master´s Project is to evaluate a company and find the value of its hares. Based on the assessment, some recommendations will be issued, that may be useful to ultiple users, such as potential purchasers of the company, current shareholders or potential nvestors. The valuation will be carried out by the discounted cash flow method and the multiples method of comparable companies. The company analyzed will be XPO Logistics, Inc., n entity of North American origin, which is listed on the New York Stock Exchange, being considered the tenth largest transport company in the world. Once the cash flow discount valuation has been carried out, the process will lead to the determination of a range of prices that will be compared with the XPO price in the stock market and will be contrasted with the financial analysts' recommendations. Given the uncertainty and volatility of the markets, the results will be calculated based on three growth hypotheses: adverse, central and favourable. Likewise, the valuation by multiples will be carried out to contrast the conclusions drawn in the discounted cash flow method, and therefore, recommendations will be made based on the obtained result. The thematic line developed, along with the results and conclusions achieved, will allow the reader to make the appropriate investment decisions, taking into account the different scenarios considered and the comparison that will be made with the recommendations of a consensus of professional financial analysts. On balance, this Final Master´s Project intends to provide a solid basis to support the financial decisions of its target audience, which takes on special significance in the current financial context, in which many large companies support considerable growth, and above all, the big entities. Máster en Dirección de Empresas (MBA)

The REDD (Reducing Emissions from Deforestation and Forest Degradation) mechanism allows carbon sinks to be used as carbon credits in order to offset emissions from other sources. However, this practice has raised a number of issues relating to financial incentives. In this study, we develop a spatially explicit model for predicting carbon emissions from deforestation that meet baseline levels as well as farmers’ opportunity costs (measured in US dollars per ton of CO2e) under three temporal scenarios with several potential discount rates for agricultural income. Additionally, we use two different accounting methods recommended by the Intergovernmental Panel on Climate Change (IPCC), including the average storage method and the “ton-year approach,” to evaluate emissions reductions. We find that farmers are more likely to prefer REDD in the short-run when discount rates are higher than 10%. However, further analysis indicates that opportunity costs would increase significantly over longer periods of time (middle-term schemes of 35 years or long-term schemes of 55 years), thereby dissuading farmers from choosing REDD. Our findings highlight the drawbacks in using REDD to mitigate global climate change and conserve forests based on farmers’ financial incentives.

We re-evaluate the theory, experimental design and econometrics behind claims that individuals exhibit non-constant discounting behavior. Theory points to the importance of controlling for the non-linearity of the utility function of individuals, since the discount rate is defined over time-dated utility flows and not flows of money. It also points to a menagerie of functional forms to characterize different types of non-constant discounting behavior. The implied experimental design calls for individuals to undertake several tasks to allow us to identify these models, and to several treatments such as multiple horizons and the effect of allowing for a front end delay on earlier payments. The implied econometrics calls for structural estimation of the theoretical models, allowing for joint estimation of utility functions and discounting functions. Using data collected from a representative sample of 413 adult Danes in 2009, we draw striking conclusions. Assuming an exponential discounting model we estimate discount rates to be 5.6% on average: this is significantly lower than all previous estimates using controlled experiments. We also find no evidence to support quasi-hyperbolic discounting or “fixed cost” discounting, and only modest evidence to support other specifications of non-constant discounting. Furthermore, the evidence for non-constant discounting, while statistically significant, is not economically significant in terms of the size of the estimated discount rates. We undertake extensive robustness checks on these findings, including a detailed review of the previous, comparable literature.

It is well known that the incorporation of the intergenerational equity objective has turned the traditional Cost–Benefit Analysis (CBA) approach into an obsolete tool for the evaluation of certain types of projects, particularly those exhibiting many environmental externalities and those whose effects extend throughout a long period of time. Two main changes are taking place in CBA in order to adapt this methodology to the sustainable development paradigm: (a) the development of new tools for the economic valuation of environmental externalities that were traditionally left out of the analysis; and (b) an in-depth revision of the theoretical foundations underlying the traditional approaches to discounting, since the repercussions of decisions that are presently being debated will extend to a distant future (in some cases for centuries), whereas in the classical CBA, we deal with few decades at best. This paper aims at investigating the discounting operation in CBA, trying to summarize the main approaches available in the literature, with specific reference to the tools which allow future generations to be included in the analysis. In order to support the theoretical explanation, a real case study is analysed concerning the evaluation of a waste incinerator that has been constructed in the Province of Turin (Italy).

The existent methods of determination of the discount and capitalization rates for the valuation of the profitable real estate are analyzed from point of their prevalence, advantages and lacks of application. The alternative methods for setting the discount rates are selected (Galasyuk’s method). There are resulted recommendations in relation to approaching calculated size of the discount and capitalization rates to the real market information. In particular, expansion of the use of actually attained level of the expected return on the invested capital is offered. The actual values of capitalization rates on the office, commercial, ware-house real estate market in the capital of Ukraine are examined for period from 2008 to 2013, which evidence of considerable changeability of investment return indexes. There is confirmed the necessity of increasing the size of corrections in supply price to the level 18-20% for calculation of the capitalization rates after the method of market extraction. There is also propagates the account of additional market factors at the construction of recapitalization rates after the Invud’s method: annual growth (decline) of leasing rates that are obtained from the profit real estate object; annual growth (decline) of cost of the real property object; a percent of diminishing of cost of the real estate object in result of all kinds of depreciation (when residual value differ from a zero).

Riba has been major driving force surrounding the conventional financial system of most economies especially the western economies and even economies that practice dual financial system are still not left out. This study seeks to examine riba and why it should be carved out of financial transactions. The study reveals that the no religion permits the consumption of riba in whatever form and concluded that the continuous consumption of riba will impoverish the economies of the world and even the welfare of citizens will not be left out because it is a tool that does not work in increasing utility.Keywords: riba (usury), fiqh riba al-duyun (debt usury), riba-al-buyu" (trade usury), intrinsic utility, discount rate, Özellikle Batı ekonomilerinde olmak üzere pek çok ekonominin geleneksel finansal sisteminde faiz ana sürükleyici kuvvettir ve bu durum çift finansal sistemi uygulayan ülkelerde bile geçerlidir. Bu makale, faizi ve onun neden finansal sistemden çıkarılması gerektiğini incelemektedir. Hiçbir dinin hangi biçimde olursa olsun faizin tüketilmesine izin vermediği, sürekli faiz tüketiminin dünya ekonomilerini fakirleştireceği ve artan fayda sağlamadığından dolayı vatandaşların refahını azaltacağı sonucuna varılmıştır. Anahtar Kelimeler: riba (faiz), borç faizi, ticaret faizi, dâhili fayda, indirim oranı

This paper assesses the impact of the demobilization, reinsertion and reintegration program in post-war Burundi. Two major rebel groups benefited from cash and in-kind transfers, the CNDD-FDD from 2004, and the FNL from 2010. A panel data of households collected in 2006 and 2010 is combined with official records from the National Commission for Demobilization, Reinsertion and Reintegration. Regression analysis shows that the cash payments received by FNL demobilized households had a positive impact on consumption, nonfood spending and investments. The program also generated positive spillovers in the villages where FNL combatants returned. Ex-combatants indeed spent a large part of their allowance on consumption goods and clothing, thereby generating a short-run economic boom in villages. However, the long-run evolution of consumption indicators is negative for CNDD-FDD households, as well as for villages where CNDD-FDD combatants returned, suggesting that the direct impact and the spillovers of the program vanished in the long run.

Lietuvos miškų ūkyje yra miškų, kaip turto, vertės atspindėjimo finansinėje apskaitoje problema. Valstybinė miškų tarnyba (VMT), vykdydama miškų kadastrą, vertina Lietuvos miškus nominalių kainų metodu. Pasigirsta siūlymų šiuos vertinimus pripažinti tikrąja miškų verte ir taikyti apskaitoje. Valdymo koordinavimo centras (VKC), analizuodamas miškų urėdijų efektyvumą, jų miškus vertina diskontuotų pinigų srautų metodu. Šie vertinimai skiriasi daugiau nei 2 kartus. Tyrimo tikslas – įvertinti Lietuvos miškų vertinimo nominalių kainų metodu tinkamumą tikrajai miškų vertei nustatyti. Uždaviniai: nustatyti miško žemės ir medynų tūrio vertinimo nominalių kainų metodu atitikimą tikrosios vertės nustatymo principams; atlikti miško žemės ir medynų tūrio palyginamus vertinimus nominalių kainų ir diskontuotų pinigų srautų metodais; palyginti brandžių medynų vertinimus nominalių kainų ir diskontuotų pinigų srautų metodais. Nustatyta, kad VMT taikomas miškų vertinimo nominalių kainų metodas neatitinka tikrosios miškų vertės nustatymo principų, vertinimai nesusieti su medienos rinkos kainų tendencijomis. Pasaulinėje miškų vertinimo teorijoje ir praktikoje vyrauja miškų vertinimai diskontuotų pinigų srautų metodu, papildant juos kitais vertinimo būdais (rinkos, pajamų, išlaidų). Th e issue how to evaluate Lithuanian forests as financial assets exists in accounting. The method of nominal price is used by the State Forest Service for the evaluation of forest economic value through the forest cadastre. There are suggestions for these assessments to be considered as the real forest value and to be used in accounting. The Governance Coordination Centre, analysing the efficiency of forest enterprises, assesses the economic value of their forests with the help of the Discounted Cash Flow (DCF) method. These estimations differ more than two times. The aim of the present research is to assess the appropriateness of the nominal price method for the fair determination of the value of Lithuanian forests. The objectives of the research are the following: 1) to ascertain the relevance of the nominal price method for the forestland and forest stand value assessment to fair value assessment principles; 2) to assess the forest land and forest stand value by using the nominal price method and the Discounted Cash Flow (DCF) method; 3) to perform a comparative analysis of forest values estimated by the nominal price method and the Discounted Cash Flow (DCF) method. The results showed that the nominal price method for forest value assessment did not comply with fair forest assessment principles, because this method is not associated with the trends of wood market prices. The Discounted Cash Flow (DCF) method is dominating in the global forest assessment theory and practical assessment of forest value, additionally supplemented by other assessment methods (market, income and expenses). It is necessary to create a monetary forest assessment methodology in Lithuania, which would be suitable for financial analysis of forestry entities.

When a natural disaster destroys public capital, these direct losses are exacerbated by indirect losses arising from reduced output while reconstruction takes place. These indirect losses may be much larger, relative to the direct ones, in low-income countries, because they lack the finance for rapid reconstruction. This paper uses a dynamic general equilibrium model to examine sovereign disaster risk insurance, increased taxation, and budget reallocation as alternative financing mechanisms for countries where increased borrowing is impractical. The analysis suggests that insurance may or may not be helpful, depending on detailed circumstances, and that budget reallocation is potentially very damaging. Raised taxation, if feasible, may be an attractive option.

Straipsnyje analizuojami daugiafunkcinio žemės ūkio pinigų srautai ir tiriamas jų poveikis organizacijos vertei. Žemės ūkio daugiafunkciškumas pasireiškia per prekinių ir neprekinių produktų, tokių kaip viešosios gėrybės, kūrimą. Viešųjų gėrybių kūrimas subsidijuojamas, jų teikėjams kompensuojant prarastas pajamas arba patirtas sąnaudas, finansuojant ilgalaikes investicijas. Todėl daugiafunkcinio žemės ūkio pinigų srautų poveikis organizacijos vertei tiriamas per viešųjų gėrybių tipologiją, jų sąsają su subsidijavimu žemės ūkyje bei viešųjų gėrybių vartojimu. Straipsnyje pagrindžiama, kodėl vieni daugiafunkcinio žemės ūkio pinigų srautai turi būti diskontuojami rinka grįsta diskonto norma, kiti – socialine diskonto norma, ir pateikiama daugiafunkcinio žemės ūkio pinigų srautų ir jų poveikio organizacijos vertei nustatymo loginė schema. The feature of multifunctional agricultural cash flows is that they come not only from agricultural production and services rendering, but also from the supply of non-commodity outputs – public goods – and so ensuring sustainable economic development. Revenue and costs concerning the supply of public goods influence on the value of provider – agri-business organization. The impact of multifunctional agricultural cash flows on the value of organization is analyzed through the typology of public goods, their relationship with financial support of agriculture and consumption of public goods. Public goods are pure private and pure public, although some public goods are mixed. Some public goods are available to individuals, some – to the group of individuals, some – to the part of society. It is worth noting that agricultural organizations get the support for the provision of some public goods, some public good brings economical benefit, some of them are provided from altruistic motives. Public goods are subsidized in order to compensate the lost income or incurred costs and financing of long-term investments. Three areas are supported under the Common Agricultural Policy: 1) increasing of competitiveness in agricultural, food and forestry sectors; 2) improvement of the environment and countryside; 3) improvement of the quality of life and diversification of rural economy. The subsidies for such areas from the public goods provision point of view can be grouped as following: 1) subsidies for promoting of production development or cessation, 2) subsidies for indirect promoting of the provision of public goods, and at the same the development of infrastructure of commodity production, and 3) subsidies for direct promoting of public goods. FCF depends on such factors as NOPAT, depreciation and amortization, capital investment and additional working capital. FCF increase the grants and subsidies received by the agricultural business organization for the provision of public goods and ensuring sustainable development, and reduce the costs incurred in provision such goods. FCF from agricultural production and services rendering are calculated adding cash flows from operating and investing activities. When the long-term investments concerning the provision of public goods are subsidized, the grants are added to FCF, but NOPAT is not adjusted by the depreciation and amortization of fixed assets. Using discounted cash flow method for valuation of agricultural organization, FCF have to grouped into two categories: 1) cash flows that are generated in producing marketable products and getting the support for provision of public goods as compensation of lost income and incurred expenses as well as the grants for long-term investments; 2) cash flows that are generated from the supported investments related with the provision of public goods, but economic and social benefits from such investments are shifted to future generations. The first FCF should be discounted at a market-based cost of capital, the second – at the SDR. The application of different discount rates for cash flows bases their impact on the value of multifunctional agricultural organization.

This paper presents a life-cycle cost analysis system, called OPTIPAV, which can consider construction costs, maintenance and rehabilitation costs, user costs, and the residual value of the pavement. The OPTIPAV was applied to the flexible pavement structures of the Portuguese pavement design manual. The paper also presents a sensitivity analysis to the discount rate. The results obtained by the application of the new life-cycle Cost Analysis (LCCA) system clearly indicate that, for any combination between traffic and pavement foundation, the optimum pavement structure always remains the same or decreases in terms of structural capacity with the increase of the discount rate value.