A Payback Approach to Generational Inequity

17 Pages Posted: 5 Dec 2016

See all articles by Robert B. Couch

Robert B. Couch

Willamette University - Atkinson Graduate School of Management

Date Written: Winter 2016

Abstract

The payback approach to capital budgeting is proposed as a clear and intuitive way to think about fiscal policy and the normative problem of generational equity. Payback has been an enduring tool of corporate capital budgeting decisions and the home mortgage industry. As a clear and resonant conceptual tool, payback measures thus have the potential to mobilize political will for overcoming difficult fiscal policy problems, when they arise. Numerical examples calibrated to U.S. federal budget history illustrate how payback measures can be used in practice.

Suggested Citation

Couch, Robert B., A Payback Approach to Generational Inequity (Winter 2016). Public Budgeting & Finance, Vol. 36, Issue 4, pp. 94-110, 2016. Available at SSRN: https://ssrn.com/abstract=2879723 or http://dx.doi.org/10.1111/pbaf.12117

Robert B. Couch (Contact Author)

Willamette University - Atkinson Graduate School of Management ( email )

900 State Street
Salem, OR 97301
United States

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