Social time preference
The value that society places on present consumption relative to future consumption. The rate of social time preference can be used in cost-benefit analysis to discount future benefits and costs. In a competitive equilibrium with no market failure the rate of social time preference is equal to the equilibrium interest rate.
Reference: Oxford Press Dictonary of Economics, 5th edt.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >