The Age of Reason: Financial Decisions Over the Lifecycle

Sumit Agarwal (), John Driscoll (), Xavier Gabaix () and David Laibson ()

No 13191, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In cross-sectional data sets from ten credit markets, we find that middle-aged adults borrow at lower interest rates and pay fewer fees relative to younger and older adults. Fee and interest payments are minimized around age 53. The measured effects are not explained by observed risk characteristics. We discuss several leading factors that may contribute to these effects, including age-related changes in experience and cognitive function, selection effects, and cohort effects.

JEL-codes: D1 D8 G2 J14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age and nep-bec
Date: 2007-06
Note: AG AP EFG
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Related works:
Working Paper: The age of reason: financial decisions over the lifecycle (2007)
Working Paper: The Age of Reason: Financial Decisions Over the Lifecycle (2007)
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