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 have significantly higher amounts of credit card debt, controlling for disposable income, other sociodemographics, and credit constraints.
Source: “Present-Biased Preferences and Credit Card Borrowing” from IZA Discussion Paper No. 4198, May 2009Â
TheRedArchive is an archive of Red Pill content, including various subreddits and blogs. This post has been archived from the blog bakadesuyo.
Title | Can “living in the present” be a bad thing? |
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Author | Eric Barker |
Date | August 23, 2011 5:54 PM UTC (12 years ago) |
Blog | bakadesuyo |
Archive Link |
https://theredarchive.com/blog/bakadesuyo/can-living-in-the-present-be-a-bad-thing.15378 https://theredarchive.com/blog/15378 |
Original Link | https://www.bakadesuyo.com/2011/08/can-living-in-the-present-be-a-bad-thing/ |
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