EconStor >
Federal Reserve Bank of Boston >
Working Paper Series, Federal Reserve Bank of Boston >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/55628
  
Title:Impatience and credit behavior: Evidence from a field experiment PDF Logo
Authors:Meier, Stephan
Sprenger, Charles
Issue Date:2007
Series/Report no.:Working paper series // Federal Reserve Bank of Boston 07-3
Abstract:This paper tests whether heterogeneity of time preferences can explain individual credit behavior. In a field experiment targeting individuals from low-to-moderate income households, we measure individual time preferences through choice experiments, and then match these time preference measures to individual credit reports and annual tax returns. We find that, controlling for disposable income and other individual characteristics, individuals who are less patient have lower credit scores and higher default rates. Moreover, people with dynamically inconsistent (quasi-hyperbolic) preferences have higher active borrowing levels.
Subjects:Time preferences
credit behavior
credit scores
delinquencies
field experiment
JEL:D12
D14
D91
C93
Document Type:Working Paper
Appears in Collections:Working Paper Series, Federal Reserve Bank of Boston

Files in This Item:
File Description SizeFormat
568822617.pdf491.75 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/55628

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.