Empirical and public choice evidence for hyperbolic social discount rates and the implications for intergenerational discounting

The derivation of the correct discount rate for intergenerational projects in Cost Benefit Analysis is particularly contentious. Public choice has resulted in lower discretionary exponential discount rates for many intergenerational projects in Britain and the USA. This is shown to be strong indirect evidence that the true social discount rate may be a hyperbolic (rather than an exponential) function. There is also empirical evidence for this hypothesis. The hyperbolic nature of discounting is also a standard finding in the behavioural sciences. For intergenerational time frames hyperbolic discount rates should be employed together with exponential discount rates in cost-benefit sensitivity analyses.Sincere thanks to Maureen Cropper and Paul Portney for supplying their survey results and to Elaine Barrow and Phillip Judge for graphics assistance. Two anonymous referees also provided valuable comments.     

Invisible pioneers? The impact of women on the recreation movement

Abstract

This article explores and describes the impact of women on the American recreation movement from 1900 to 1960. The theses that emerged in this article are that women were actively involved in the early and middle years of the movement, that their activities were different from men's activities and thus largely invisible as recorded in the history of the recreation movement, and that the social “ethic of caring” embodied the professional and volunteer activities that women undertook. These theses provided a transitional history about the women who were involved with the recreation movement in various capacities. Although notable women were identified through the data collection, it was the “collective biography” of the women in the field that provided the archetypical model that described the impact of women on the recreation movement.     

Gradient-based smoothing parameter selection for nonparametric regression estimation

Estimating gradients is of crucial importance across a broad range of applied economic domains. Here we consider data-driven bandwidth selection based on the gradient of an unknown regression function. This is a difficult problem given that direct observation of the value of the gradient is typically not observed. The procedure developed here delivers bandwidths which behave asymptotically as though they were selected knowing the true gradient. Simulated examples showcase the finite sample attraction of this new mechanism and confirm the theoretical predictions.     

Canada's Budget Triumph

In the mid‐1990s Canada's federal government, concerned about a debt‐to‐GDP ratio that was approaching 70%, began a decade‐long policy of cutting government spending. It also increased taxes, but by only one dollar for about every six dollars of spending cuts. The Canadian government cut subsidies to individuals, corporations, and provincial governments while tightening eligibility for unemployment insurance. The government also sold off its holdings of various state‐owned enterprises. One major success was its shifting of air traffic control to NAV Canada, a private, non‐profit user cooperative. This step netted the government $1.4 billion at the outset, saved about $200 million a year in subsidies, and resulted in a technological revolution in air traffic control that has put Canada years ahead of the United States. From 1997 to 2008, Canada's government had an unbroken string of annual budget surpluses; and by 2009, Canada's debt‐to‐GDP ratio had fallen below 30%. Starting in 2000, the government used some of what otherwise would have been surplus to cut taxes on individuals and corporations. The corporate tax rate was cut in stages from 28% in 2000 to 21% by 2004.     

Reconnecting Australian consumers and producers: Identifying problems of distrust

A growing gap between the production and consumption of food has led to a decline in consumer trust in food, and a desire for increased regulation of food. The aim of this study was to investigate the nature of consumer trust in food production and regulation in the wake of shifts in food technology, globalisation and production. Semi-structured interviews (n = 47) were conducted in 2009 with participants living in rural and metropolitan South Australia. Rural participants were more trusting of food production because of their direct experience with producing food than their metropolitan counterparts. Consumers’ embeddedness in food production impacts their trust in food. Increasing local food production and consumption may increase consumer trust in food, and decrease consumer dependence on government regulation.