Cohen (2024) argues that health economists should start using 2% discount rates for health economic models. Why is that? I summarize the article below. First, Cohen discusses two different methods for estimating discount rates. Ramsey equation. This approach consider 4 factors: pure time preference, catastrophic risk, wealth effect, and macroeconomic risk. The first 3 factors … Continue reading Is it time to start using a 2% discount rate?