Present-Biased Preferences and Credit Card Borrowing

• 成果类型: Article
• 署名作者: Meier, Stephan; Sprenger, Charles
• 署名单位: Columbia University; University of California System; University of California San Diego
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.2.1.193
• 发表日期: 2010
• 页码: 193-210
• 关键词: liquidity constraints; behavioral-economics; time-preferences; eliciting risk; rates

摘要

Some individuals borrow extensively on their credit cards. This paper tests whether present-biased time preferences correlate with credit card borrowing. In afield 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 to have significantly higher amounts of credit card debt, controlling for disposable income, other socio-demographics, and credit constraints.