Towards a social discount rate in Russia: methodology and regional differences
Nowadays performance estimation in the public sector of economics is a problem of high importance for Russia since the public sector is rapidly developing. In Russian statutory acts methodologies of performance estimation are allocated but there are no recommendations concerning a (social) discount rate for comparison of costs and social benefits of public sector projects. Nevertheless the use of a social discount rate in decision-making process can help to calculate the net present value of public sector projects properly and to avoid taking nonviable investment initiatives. The paper proposes methodology of social discount rate evaluation taking into account a regional aspect. We modify existing approaches and determine the limits of solutions offered. All calculations are based on the data of Federal State Statistics Service of Russia.