The discount rate for cost-benefit analysis can be determined by looking at the growth rate of real per-capita income, which is typically around 2%. This rate falls within the range recommended by the U.S. Office of Management and Budget. By using a simple tool, researchers have shown that small policy changes affecting multiple generations can be evaluated by simplifying the problem. The discount rate is well-defined for a heterogeneous society under relative utilitarianism, which considers the values of the growth rate of real per-capita income.