Impatience and uncertainty are explanations for a positive rate of time preference.

Question

Quizplus · Accepted Answer

Impatience refers to the desire for immediate gratification or the preference for present consumption over future consumption. Uncertainty refers to the risk involved in making decisions about the future. Both of these factors contribute to a positive rate of time preference, which means that people value present consumption more than future consumption and are willing to pay a premium for it.

Impatience and Uncertainty Are Explanations for a Positive Rate of Time