"Time Preference and Investment Expenditure": Comment on Hülsmann
AbstractHülsmann (2008) argues that the neglect of time preference changes on the demand side of the time market renders Rothbard's (1993) analysis incomplete in that it unduly portrays a rise in the volume of investment as a necessary counterpart to a fall in the pure interest rate. Focusing on the determinants of the demand for present goods, this paper shows that though Hülsmann's strictures are essentially valid, Rothbard has actually explained why the direct impact of time preference changes should display itself mostly on the supply side. However, the implications have been neglected both by Hülsmann and Rothbard. We explore these implications, demonstrating that the present demand schedule and the volume of investment should be considered as mostly independent from present time preferences and determined instead by past production decisions. We show how this approach allows for a more "dynamic" understanding of the time market and growth processes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00697215.
Date of creation: 30 Nov 2011
Date of revision:
Publication status: Published, Procesos de Mercado: Revista de Economía Política, 2011, VIII, 2, 291-304
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00697215
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Time Preference; Investment Expenditure; Time Market; Structure of Production; Interest Rate; Growth Types; Austrian Macroeconomics;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-29 (All new papers)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.