Definitions
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- noun economics A measure of the preference a
consumer has forenjoyment at a time in the future that is either moreimmediate or moreremote .
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whichbe commented on the word time preference
In economics, this pertains to how large a premium a consumer will place on enjoyment nearer in time over more remote enjoyment.
There is no absolute distinction that separates "high" and "low" time preference, only comparisons with others either individually or in aggregate. Someone with a high time preference is focussed substantially on their well-being in the present and the immediate future compared to the average, while someone with low time preference places more emphasis than average on their well-being in the further future.
Time preferences are captured mathematically in the discount function. The higher the time preference, the higher the discount placed on returns receivable or costs payable in the future. Also called discounting. (Wikipedia)
May 22, 2008