The Endogenous Determination of Time Preference

with Gary S. Becker


We model a consumer's efforts to overcome an endowed bias against the future, showing how wealth, mortality, addictions, uncertainty and other variables affect one's ultimate degree of time preference. In addition to working out the implications of our model, we discuss related evidence on consumption, savings, and the dynamics of inequality and how that evidence is related to the predictions of our model.

You cannot download a copy of this paper. It was published as:
Becker, Gary S. and Casey B. Mulligan. "The Endogenous Determination of Time Preference." Quarter Journal of Economics. 112(3), August 1997: 729-58.
© copyright 1996 by Gary S. Becker and Casey B. Mulligan.