Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35670
Authors: 
Meier, Stephan
Sprenger, Charles D.
Year of Publication: 
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.
Subjects: 
Time preferences
dynamic inconsistency
credit card borrowing
field experiment
JEL: 
D12
D14
D91
C93
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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