Comment on Burgess and Zerbe: On bank market power and the social discount rate

• In this note we discuss how to estimate the social discount rate when banks have market power. Some data from Sweden are used to illustrate the approach. If other investments are crowded out, the implied social discount rate is around 7 percent, i.e. more or less equal to the one suggested by Burgess and Zerbe (2011) for the U.S. but similar to those often used in the EU (3-4 percent) if private consumption is crowded out by the considered investment.

Ämnesord

LANTBRUKSVETENSKAPER  -- Annan lantbruksvetenskap -- Miljö- och naturvårdsvetenskap (hsv//swe)

AGRICULTURAL SCIENCES  -- Other Agricultural Sciences -- Environmental Sciences related to Agriculture and Land-use (hsv//eng)

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

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