Placing a lower value on future receipts than on the present receipt of an equal sum, driven by pure time preference, risk, mortality, and wealth expectations.
A comprehensive look into the measure of a consumer's willingness to shift consumption between different time periods, known as the Elasticity of Intertemporal Substitution (ε_s).
An assumption on the rate of time preference that reflects a bias towards present rewards. Hyperbolic discounting contrasts with exponential discounting where the discount rate between any two periods is constant.
A comprehensive examination of preferences, including axioms of preference, liquidity preference, personal preferences, revealed preference, single-peaked preferences, and time preference.
Time discounting involves placing a lower value on future receipts or payments compared to immediate ones. This encompasses pure time preference, survival uncertainty, and the expectation of declining marginal utility of money.
An in-depth exploration of the concept of time preference, its historical context, key events, mathematical models, significance, and applications.
