Assessing the Personal Discount Rate

Abstract

This paper reviews research on the estimation of the personal discount rate (a key factor in evaluating the effects of changes in retirement programs) and presents results from recent Army Research Institute research on this issue. According to this research, the discount rates being used in economic models are likely to be incorrect. There is evidence that the discount rate applied to retirement benefits may be much lower than assumed. Retirement policies favoring present pay over future benefits may qualitatively change the composition of people remaining in the force. Keywords: Reenlistment; Logistics models; Statistical Methodology.

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Document Details

Document Type
Technical Report
Publication Date
Mar 01, 1985
Accession Number
ADA178567

Entities

People

  • Edward J. Schmitz
  • Roy D. Nord

Organizations

  • U.S. Army Research Institute for the Behavioral and Social Sciences

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Army Personnel
  • Business Administration
  • Economic Analysis
  • Economic Models
  • Economics
  • Education
  • Enlisted Personnel
  • Information Processing
  • Investments
  • Literature Surveys
  • Management Personnel
  • Military Personnel
  • Military Research
  • Money
  • Personnel Management
  • Social Sciences
  • Statistics

Fields of Study

  • Education

Readers

  • Life Cycle Cost Analysis
  • Naval Personnel Management
  • Systems Analysis and Design