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|Title:||Present-biased preferences and credit card borrowing |
Sprenger, Charles D.
|Issue Date:||2009 |
|Series/Report no.:||IZA discussion papers 4198|
|Abstract:||Some individuals borrow extensively on their credit cards. This paper tests whether present-biased time preferences correlate with credit card borrowing. In a field study, we elicit individual time preferences with incentivized choice experiments, and match resulting time preference measures to individual credit reports and annual tax returns. The results indicate that present-biased individuals are more likely to have credit card debt, and have significantly higher amounts of credit card debt, controlling for disposable income, other socio-demographics, and credit constraints.|
credit card borrowing
|Persistent Identifier of the first edition:||urn:nbn:de:101:1-20090615131|
|Document Type:||Working Paper|
|Appears in Collections:||IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)|
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