Optimal Discount Rates for Government Projects

Table 6

Utility loss from a government project with an unfavorable risk profile.

𝑁	𝐵	𝑏	𝐸(𝑣)𝑍	𝐸(𝑣)	Per-capita utility loss	Total utility loss
10	1	0.1	−4.058304	−3.924154	0.134149	1.341495
100	1	0.01	−3.937268	−3.924154	0.013113	1.311329
1000	1	0.001	−3.925463	−3.924154	0.001308	1.308378
10000	1	0.0001	−3.924285	−3.924154	0.000131	1.308084
100000	1	0.00001	−3.924167	−3.924154	1.3081𝐸−05	1.308055
1000000	1	0.000001	−3.924156	−3.924154	1.3081𝐸−06	1.308052
10000000	1	0.0000001	−3.924154	−3.924154	1.3081𝐸−07	1.308051
100000000	1	0.00000001	−3.924154	−3.924154	1.3081𝐸−08	1.308051
1000000000	1	1𝐸−09	−3.924154	−3.924154	1.3081𝐸−09	1.308051