Notes: A Note on the Real Rate of Discount

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Abstract:

If an additive relation is used to link the real and nominal rates of discount, inflation influences the outcome of forestry project investments. If the correct multiplicative relation is used, equivalency should prevail between the analyses made in real and nominal terms. The real value approach should be favored on practical grounds whenever possible. Forest Sci. 29:249-252.

Keywords: Inflation; forestry investment

Document Type: Miscellaneous

Affiliations: Assistant Professor, Department of Forestry and Wildlife Management, University of Massachusetts, Amherst, MA 01003

Publication date: June 1, 1983

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