Is it time to start using a 2% discount rate? – Healthcare Economist

Is it time to consider a 2% discount rate in health economic models? Cohen (2024) argues in favor of this change. He discusses the Ramsey equation and financial markets as different methods for estimating discount rates. Cohen suggests that with declining real growth rates and interest rates over time, a lower discount rate of 1.5%-2% may be more appropriate for value assessment. This recommendation highlights the importance of reevaluating discount rate assumptions in health economic models for more accurate and relevant analyses.