# Minimum estimation of future needs (principle of positive time preference)

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- Post ID: 595057
- Modified: 2023-07-25T21:03:24+00:00
- Language: en

## Definition

The fact (based on experience) that consumers generally attach greater value to present goods than to future goods. In other words, to-day's goods have a higher degree of desire for a person. Therefore, if someone foregoes consumption today, i.e. saves and transfers money as a loan to someone else, he wants compensation for this time preference, a premium: interest. - See financial psychology, saving, saving rate, interest, interest theories. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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