Social discount rates and welfare weights for public investment decisions in Turkey

This study is concerned with the measurement of the social discount rate (SDR) to be used in the evaluation of public sector projects and the application of regional welfare weights (RWW) to facilitate the implementation of regional development policy in Turkey. The issue of an appropriate SDR and a set of RWW is particularly important for Turkey since the country has acquired candidate status for membership of the EU and therefore is eligible for EU funds such as the instrument for Pre-AccessionA ssistance. However, the EU regulations stipulate that all major investment projects to be considered for a share of the EU funds must be supported by a cost benefit analysis which requires the application of a discount rate. Moreover,C hapter 21 of the acquis communautaires ets out regional development as one of the most important policy concerns for the EU. Thus, it is crucially important for Turkey to develop coherent and viable regional policies in the context of its negotiations for full membership of the EU. However, Turkey currently has neither a consistent and explicit policy regarding the application of a social discount rate in the appraisal of its public projects, nor a set of coherent and viable policies with respect to regional development. There is also a gap in the literature regarding these issues. Therefore, the twin objectives of this study are the estimation of an SDR for Turkey and the calculation and application of welfare weights in regional policy.

Grantor dc:publisher

Oxford Brookes University

Year dc:date

2011

Author dc:creator

• Sezer, Haluk

Contributors dc:contributor

• Evans, David
• Kula, Erhun

Statement dc:rights

• All rights reserved

Language dc:language

en

DOI dc:identifier

https://doi.org/10.24384/wqb9-dc32

OAI identifier oai:identifier

tle:d1bb90bc-8c0d-4672-a887-d12a4f123ac2:d6bd9758-527a-46cd-bfe2-c433766e8fca:1