Discount Rate

A discount rate compares future benefits (or costs) to current benefits (or costs)1.

A high discount rate means that we count future benefits for less. A zero discount rate means we value future benefits equally to current benefits.


References

1.
Cowen, T. Stubborn Attachments: A Vision for a Society of Free, Prosperous, and Responsible Individuals. (Stripe Press, San Francisco, CA, 2018).