xvi ANALYTICAL TABLE OF CONTENTS CHAPTER IV

TIME PREFERENCE (HUMAN IMPATIENCE)

PAGE

§ 1. Preference for Present Over Future Income.61

§ 2. Reduction to Enjoyment Income.63

§ 3. Impatience Depends on Income.66

§ 4. Interest and Price Theory.68

I 5. Specifications of Income.70

§ 6. The Influence of Mere Size.72

§ 7. The Influence of Time Shape.73

§ 8. The Influence of Risk.76

§ 9. The Personal Factor.80

§ 10. The Personal Factor Summarized.89

§ 11. Income Rather Than Capital in the Leading Role ... 91

§ 12. Impatience Schedules.94

CHAPTER V

FIRST APPROXIMATION TO THE THEORY OF INTERESTAssuming Each Person’s Income Stream Foreknown andUnchangeable Except by Loans

§ 1. Hypotheses of First Approximation.99

§ 2. Income Prescribed.102

§ 3. Equalization of Impatience.104

§ 4. Altering Income by Loans. 106

§ 5. Altering Income by Sale.112

§ 6. Interest Ineradicable.116

§ 7. “Marginal” Principle Is “Maximum” Principle .... 117

§8. Market Equilibrium.119

§ 9. Four Principles.121

CHAPTER VI

SECOND APPROXIMATION TO THE THEORY OF INTERESTAssuming Income Modifiable (1) by Loans and (2) by Other Means

§ 1. The New Hypotheses.125

§ 2. Optional Income Streams.129

§ 3. The Two Kinds of Choice.135

§ 4. Opportunity to Invest by Change of Use of Capital . . 141

§ 5. The Reasoning Not “Circular”.144

§ 6. Summary.147