TERMIUM Plus®

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social rate of time preference [1 record]

Record 1 2016-02-26

English

Subject field(s)
  • Saving and Consumption
  • Investment
DEF

A rate, usually expressed in the form of a percentage, that expresses the preference of a society as a whole for present returns rather than future returns and that sometimes is proposed as a discount rate for project analysis. Generally considered to be less than the opportunity cost of capital, which expresses a summation of individual time preferences because the society as a whole has a longer time horizon than does any one of its members.

CONT

... the appropriate rate of interest or rate of discount by which the net benefit at any point of time is weighed ... reflects society's rate of time preference. (If, for example, society is indifferent between having $100 million today and $106 million next year, the social rate of time preference is 6 per cent per annum.)

OBS

for "social MTPR" : An individual is said to have a time preference between consumption in different periods. This is measured by his marginal time preference rate (MTPR for short).

Key term(s)
  • social marginal time preference rate

French

Domaine(s)
  • Épargne et consommation
  • Investissements et placements
OBS

Le choix du taux d'intérêt désiré constitue (...) un arbitrage entre une consommation globale plus importante aujourd'hui, ou des investissements plus nombreux, et (...) une consommation plus forte demain. C'est pourquoi ce taux est souvent appelé le "taux de préférence collective pour le présent".

Spanish

Campo(s) temático(s)
  • Ahorro y consumo
  • Inversiones
DEF

Se trata de una tasa, indicada usualmente en forma porcentual, que expresa la preferencia de una sociedad en conjunto por los rendimientos presentes en lugar de los futuros y que, a veces, se propone como una tasa de actualización para el análisis de proyectos. En general, se considera que es menos que el costo de oportunidad del capital, que expresa una suma acumulada de preferencias temporales individuales porque la sociedad en conjunto tiene un horizonte cronológico más extenso que cualquiera de sus miembros.

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