Gonzalo Edwards;
Abstract
This paper analyzes the different methodologies used to estimate the long-run discount rate to be used when evaluating public projects in certain countries. Addi tionally, it estimates, for Chile, the discount rate, based on two methodologies: one is a small variation of Gamma discounting, first proposed by Martin Weitzman (2001), and the other one uses the Ramsey formula derived from a growth model to estimate the social rate of time preference.