The discount rates and factors

The discount rates and factors reported in this paper are derived based on an estimation of the Cox-Ingersoll-Ross (CIR) stochastic interest rate model [1]. The data can then be used to evaluate investment projects, even when their cash flows occur in the distant future. In the CIR model, the dynamic process for the interest rate can be denoted bywhere is the real risk free rate, is the long run level of the risk free rate to which reverts, and is the rate of reversion of . In this model, is a Wiener process and denotes the so-called local volatility. We estimate a CIR model for Australia, using maximum likelihood estimation [2]. Data on the real risk free rate is obtained by subtracting the inflation rate (provided by the Australian Bureau of Statistics) from nominal yields of long term (10 years) government bonds (provided by the Reserve Bank of Australia). We use quarterly observations on risk free rates for the time period 1970–2010 to estimate the model. For Australia, the estimated parameters of model (1) for the considered sample period are . Given the interest rate model (1), the discount factor for discounting monetary costs and benefits occurring at time t back to present values, i.e. to time t=0, can be estimated as:where
The certainty equivalent discount rate is then estimated based on [7]׳s definition: Table 1 provides data on certainty equivalent discount rates and discount factors for Australia for time horizons between zero and 200 years and selected initial risk-free interest rates at time t=0 between 1% and 9%. The data has been used for the analysis of investments into climate crth2 receptor projects, see, e.g., [3], and can continue to be used for other CBA studies in Australia.
This data helps enrich the knowledge in the following research areas of finance: If you include the head items from the graph in your research interests and collecting facts, you׳ll see how the world of finance functions in terms of mental structures reflected in the English language. Mental activities are widely discussed at the level of brain activity . However, we see a potential to analyze mental activity at the level of words. It is possible to conduct a cross-cultural analysis of the ‘money’ and ‘finance’ concepts in English and in Russian. This can bring you to a better understanding of cultural difference of financial issues and new cross-cultural research fields. These issues are of much importance in connection with tourism and finance in general .
Data First, we must emphasize that the Italian real estate market is highly opaque and that Italian construction companies hardly reveals information about their building sites, costs or corporate profiles. Therefore, more than elsewhere on the international scene, it is very difficult to collect data, which are private and not publicly recorded or cataloged [4,5]. In the Italian literature, datasets have little data and the related studies analyze on average 70–80 property [6]. Therefore, our dataset contains information on 70 new residential development projects in North-East Italy, presented between 2006 and 2015. Table 1 lists the surveyed variables (selected both by consulting literature and according to the purposes of this survey), identified by a coding system and clustered into four groups, it also defines their measurement scales, as theorized by Stevens [7].
Experimental design, materials and methods We submitted a questionnaire (Table 2) to several qualified operators in the building sector active in the reference area, stakeholders working for medium-sized enterprises. They were asked to complete a chart, so that we could sample various types of development projects. After collecting all the survey charts, we compiled the proposed dataset, summarizing and processing its characteristics. The variables selected included some chosen from those examined in the literature [8,9], plus several others judged to be better at interpreting the socio-economic characteristics and formal education level of the local populations, processed by referring to the localization of the building project.