On the social discount rate for South American Countries

ABSTRACT

In this paper, the social discount rate (SDR) is calculated for nine South American countries. We use the social time preference methodology, and as opposed to previous studies for the region, the elasticity of marginal utility of consumption is estimated econometrically using a panel data approach. In particular, a fixed effect panel data model was used to estimate the income elasticity of demand for food. The time-series data used come from the same sources for every country under consideration and correspond to the period 1990–2020.

KEYWORDS:

• Social discount rate
• income elasticity of demand for food
• South American countries
• cost-benefit analysis

JEL CLASSIFICATION:

• H43
• C33
• O12

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ The rate in Argentina, Bolivia, Colombia and Ecuador is 12%, Paraguay 11.4%, Perú 9%, Uruguay 7.5%, and Brazil 8.5% in real terms.