Nicolaj correct me if I’m wrong – I think it’s derived here in the OP:
(Quantitatively it would be captured by η=1.87 when combined with the improving circumstances component. That comes from solving the last equation in Rethink Priorities’ 2023 report for η given r=0.026 and g=0.03—i.e., assuming that the compounding non-monetary benefits factor also reflects diminishing marginal utility from income doublings. As a result I’m assuming the discount rate reflects η=1.87 for the remainder of the post.)
That last equation on pg 48 is 𝑟_𝐺𝑖𝑣𝑒𝑊𝑒𝑙𝑙 = (1 + δ)(1 + 𝑔)^(η−1) − 1. δ is the pure time preference rate, for which GiveWell’s choice is δ = 0%; pg 30 in the RP report above summarizes the reasoning behind this choice.
Nicolaj correct me if I’m wrong – I think it’s derived here in the OP:
That last equation on pg 48 is 𝑟_𝐺𝑖𝑣𝑒𝑊𝑒𝑙𝑙 = (1 + δ)(1 + 𝑔)^(η−1) − 1. δ is the pure time preference rate, for which GiveWell’s choice is δ = 0%; pg 30 in the RP report above summarizes the reasoning behind this choice.