Liquidity Constraints, Consumption, and Debt Repayment: Evidence from Macroprudential Policy in Turkey

• 成果类型: Article
• 署名作者: Agarwal, Sumit; Hadzic, Muris; Song, Changcheng; Yildirim, Yildiray
• 署名单位: National University of Singapore; Singapore Management University; City University of New York (CUNY) System; Baruch College (CUNY)
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad024
• 发表日期: 2023
• 页码: 3953
• 关键词: anticipated income changes; consumer response; household consumption; predictable changes; windfall income; monetary-policy; credit; expenditure; payments; cycles

摘要

Using account-level credit card data from a large Turkish bank, we study the impact of a unique credit card policy that increases minimum payment on consumption and debt repayment. We show that the policy reduces credit card spending and debt, boosts existing debt repayment, and reduces credit card delinquency. The credit card debt of affected consumers falls on average by 50$\%$ two years into the policy's implementation. An increase in minimum payment has a stronger effect than does a decrease of a similar magnitude. We build a benchmark life cycle model with soft liquidity constraint to explain the reduction in credit card spending.