Time preference in the context of "Eugen von Bohm-Bawerk"

The time value of money refers to the fact that there is normally a greater benefit to receiving a sum of money now rather than an identical sum later. It may be seen as an implication of the later-developed concept of time preference.

The time value of money refers to the observation that it is better to receive money sooner than later. Money you have today can be invested to earn a positive rate of return, producing more money tomorrow. Therefore, a dollar today is worth more than a dollar in the future.

Eugen Böhm Ritter von Bawerk (short form: Eugen von Böhm-Bawerk, Austrian German: [fɔn bøːm ˈbaːvɛrk]; born Eugen Böhm, 12 February 1851 – 27 August 1914) was an Austrian-school intellectual and political economist who served intermittently as the Minister of Finance of Austria between 1895 and 1904. Böhm-Bawerk is noted for the theory of Roundaboutness, which emphasizes the time intensity, not only capital intensity, of investments in capital goods to increase productivity. He advanced an interest rate theory centered on time preference. He also wrote an extensive critique of Marxism and Marx's labor theory of value.