SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Austrian Economics, a lens on everyday reality
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Don Lloyd who wrote (283)11/13/2003 3:21:31 PM
From: gpowell  Read Replies (1) of 445
 
Specific present consumption is always preferred to future consumption by an individual's rate of time preference.

Correct, and a good point. In comparing intertemporal comsumption of perfect substitutes of normal goods, present consumption is preferred. And, while in the long run financial capital can be viewed as delayed consumption, it is incorrect to think of the current and future consumables as perfect substitutes.

I think it is essential to view financial capital as having utility due to their future use in an expanded constrained choice set, beyond its benefit as a hedge against future negative shocks.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News