Becker and Mulligan analyze the endogenous determination of time preference, showing how factors like wealth, mortality, addictions, and uncertainty influence an individual's time preference. They model time preference as the marginal rate of substitution between current and future utilities, distinguishing it from earlier definitions based on consumption. The paper argues that time preference is not exogenous but depends on an individual's ability to imagine the future, which can be influenced by resources spent on improving this ability. They show that wealth, mortality, and other factors affect the degree of time preference, and provide evidence from the PSID that a son's consumption growth is positively correlated with his parents' wealth, suggesting intergenerational transmission of patience. The paper also discusses the implications of their model for interest rates, inequality, and choice under uncertainty. They argue that time preference is not fixed but can be influenced by an individual's efforts to overcome biases against the future. The paper concludes that their results can be generalized to more complex utility functions and more realistic ways of endogenizing time preference. The authors also discuss the implications of their model for the behavior of consumers in the presence of uncertainty and addictions, showing that these factors can influence time preference. The paper highlights the importance of time preference in economic theories of savings, investment, and consumption, and argues that it is not merely a given but is shaped by various economic and personal factors. The authors also discuss the implications of their model for the distribution of wealth and the dynamics of inequality, showing that wealthier individuals may have a greater incentive to invest in patience. The paper concludes that their model provides a more comprehensive understanding of time preference and its role in economic behavior.Becker and Mulligan analyze the endogenous determination of time preference, showing how factors like wealth, mortality, addictions, and uncertainty influence an individual's time preference. They model time preference as the marginal rate of substitution between current and future utilities, distinguishing it from earlier definitions based on consumption. The paper argues that time preference is not exogenous but depends on an individual's ability to imagine the future, which can be influenced by resources spent on improving this ability. They show that wealth, mortality, and other factors affect the degree of time preference, and provide evidence from the PSID that a son's consumption growth is positively correlated with his parents' wealth, suggesting intergenerational transmission of patience. The paper also discusses the implications of their model for interest rates, inequality, and choice under uncertainty. They argue that time preference is not fixed but can be influenced by an individual's efforts to overcome biases against the future. The paper concludes that their results can be generalized to more complex utility functions and more realistic ways of endogenizing time preference. The authors also discuss the implications of their model for the behavior of consumers in the presence of uncertainty and addictions, showing that these factors can influence time preference. The paper highlights the importance of time preference in economic theories of savings, investment, and consumption, and argues that it is not merely a given but is shaped by various economic and personal factors. The authors also discuss the implications of their model for the distribution of wealth and the dynamics of inequality, showing that wealthier individuals may have a greater incentive to invest in patience. The paper concludes that their model provides a more comprehensive understanding of time preference and its role in economic behavior.