United States Marine Corps personal discount rates as evidenced from voluntary separation payment programs
Deichert, Martin K.
Hensel, Nayantara D.
Kocher, Kathryn M.
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Personal discount rates can be defined as the rate at which Marines trade current dollars for future dollars. This research attempts to fill in the gaps in previous discount rate studies where Marine Corps data were omitted, by determining the personal discount rates for each individual who separated from the Marine Corps under the SSB or VSI voluntary separation payment programs between 1992 and 1997. This study also determined those personal, professional, and economic traits that had a significant influence on Marines during their separation payment option decisions. The findings of this research are similar to previous studies, indicating that the methodology applied in this study is accurate. The implications of this research for the Marine Corps are that manpower planners can use the determined personal discount rates to create policies that can target Marines who possess certain personal or professional characteristics for reduction or retention, thereby assisting the efforts to create a balanced and capable Marine Corps in the future. Planners can also use this research to anticipate the effect of policy changes on Marines with specific professional or personal traits.
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