The Age of Reason: Financial Decisions Over the Lifecycle

Xavier Gabaix, John Driscoll, David Laibson and Sumit Agarwal

No 322, 2008 Meeting Papers from Society for Economic Dynamics

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.

Date: 2008
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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)
Working Paper: The Age of Reason: Financial Decisions Over the Lifecycle (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed008:322

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