DOI
10.1111/0008-4085.00011
Abstract
Early neoclassical economists presumed an element of irrationality in the context of intertemporal decision making. W.S. Jevons, Irving Fisher, Alfred Marshall, and A.C. Pigou observed a preference for present over future consumption, and each took this as evidence that consumer ‘foresight’ or ‘will power’ was defective. The labouring classes were said to discount future consumption to reflect uncertainty, and such discounting is regarded as ‘rational.’ But each of these economists focused on an additional, and purportedly ‘irrational,’ reason for discounting: ‘impatience.’ Consumers are thus said to make persistent miscalculations when it comes to decisions involving time.
Document Type
Restricted Article: Campus only access
Publication Date
1-7-2003
Publisher Statement
Copyright © 2003, Wiley.
DOI: https://doi.org/10.1111/0008-4085.00011
The definitive version is available at: https://onlinelibrary.wiley.com/doi/10.1111/0008-4085.00011
Recommended Citation
Peart, S. J. (2000). Irrationality and Intertemporal Choice in Early Neoclassical Thought. The Canadian Journal of Economics / Revue Canadienne d’Economique, 33(1), 175–189. https://doi.org/10.1111/0008-4085.00011
