Multigenerational value: modifying the modified discounting method
Open Access
- 1 June 1991
- journal article
- research article
- Published by Taylor & Francis in Project Appraisal
- Vol. 6 (2) , 101-108
- https://doi.org/10.1080/02688867.1991.9726802
Abstract
The theoretical basis and potential applicability of Kula's modified discounting method (1988) are reconsidered in this paper. A more general discounting model, labeled multigenerational value (MV), is derived from utilitarian principles. The equity implications of multigenerational discounting are analyzed, with mixed results. Variants ofMVare shown to be applicable to private investments, sequential decisions, public goods, and other contexts.Keywords
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