Defining the welfare state is not a simpleminded task. Actually, there are numerous definitions which try to reflect at least some of the basic characteristics of the welfare state or its objectives and its functions. For some, there is primarily an institutional parameter, for others there are...

In “Gamma Discounting” Martin L. Weitzman (2001) concludes that certainty equivalent discount rates should decline significantly over time. He draws this conclusion from fitting a Gamma distribution to the responses of 2,160 economists asked to give a discount rate estimate and calculating...

A numerical model is used to experimentally compute certainty equivalent discount rates (CERs) of risk neutral and risk-averse decision makers. Investors are characterized by utility functions of the constant-intertemporal-elasticity-of-substitution (CIES) type. Stochastic interest rates are...

The Weitzman-Gollier Puzzle centered on the question of whether certainty equivalent discount rates should be growing or declining functions of time in capital markets with perfectly autocorrelated stochastic interest rates. Absent a convincing solution of the puzzle in the context of risk...

This paper examines the social opportunity cost of a hypothetical public project in Australia and compares these values with the cost of the project as measured by factor prices. Since 2001, the Australian taxation system has included an ad valorem tax, the Goods and Services Tax, however...

This paper examines the social opportunity cost of a hypothetical public project in Australia and compares these values with the cost of the project as measured by factor prices. Since 2001, the Australian taxation system has included an ad valorem tax, the Goods and Services Tax, however...

For at least fifty years economists have argued that vertically-aggregated marginal willingness to pay, when set equal to marginal provision cost, will result in optimal public good provision levels. This methodological approach would be expected to yield an exact analog, in terms of optimal...

This article considers approaches, prevalent in the world, to appraisal of large-scale investment projects aimed at construction of transport systems. The approaches are classed as microeco-nomic evaluation, multi-criteria evaluation, and macroeconomic evaluation. Problems of appli-cability of...

Building upon an earlier version, I further review the key methods to evaluate transportation projects. Since transportation projects offer substantial social benefits and costs, it is vital to provide a comparative analysis on the commonly-used methods, i.e., which method(s) to use and under...