A discount rate should be constant across equal time intervals; if it appears to vary (preferring money-now in the near comparison but waiting in the far-shifted comparison), that inconsistency reveals present-bias rather than a stable preference.

definitionpending

Speaker

Michael Munger

Evidence Quote

your discount rate should be constant there's nothing that would say your discount rate should vary over time your discount rate is how you value the present over the future

Source

Mike Munger on Microfinance, Savings, and Poverty 04/18/2011EconTalk
Created: 6/17/2026, 10:29:24 AM

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