Download or read book Optimal Discount Rates for Government Projects written by Sangkyun Park and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Project selection based on the net-present-value can be optimal only if the discount rate is optimal. The optimal discount rate for a government project can be a riskfree rate, a market rate, or an adjusted market rate, depending on circumstances. This paper clarifies the conditions for each case. A more novel contribution of this paper is to derive comparable market rates for different intervention methods and subsidy rates. The comparable market rate varies across intervention methods and changes with the subsidy rate.