Discount rate is rate at which actors will value something that occurs in the future at less than its value now.
A simple hypothetical test that would determine this would be:
- 'Would you rather have \$100 now, or \$100 in one year?'
- 'Would you rather have \$100 now, or \$150 in one year?'
- 'Would you rather have \$100 now, or \$200 in one year?'
And so forth, to determine just how much someone values money now, over money in the future.
Discount rates can explain why criminals for example, commit seemingly irrational crimes - the cost of potential imprisonment being discounted because it's an abstract outcome that occurs in the future, compared to an immediate gain now.
My question is - is there research into what factors affect and individual's discount rate?
Eg. things like age, education, income.
And in what circumstances was the discount rate being measured?