Present-Biased Preferences and Credit Card Borrowing
Stephan Meier () and
American Economic Journal: Applied Economics, 2010, vol. 2, issue 1, 193-210
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 to have significantly higher amounts of credit card debt, controlling for disposable income, other socio-demographics, and credit constraints. (JEL D12, D14, D91)
JEL-codes: D12 D14 D91 (search for similar items in EconPapers)
Note: DOI: 10.1257/app.2.1.193
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (193) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Present-Biased Preferences and Credit Card Borrowing (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aejapp:v:2:y:2010:i:1:p:193-210
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Journal: Applied Economics is currently edited by Alexandre Mas
More articles in American Economic Journal: Applied Economics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().