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Is there any connection between television and household debt?

Eric Barker
October 6, 2010

We examine whether advertising increases household debt by studying the initial expansion of television in the 1950’s. Exploiting the idiosyncratic spread of television across markets, we use micro data from the Survey of Consumer Finances to test whether households with early access to television saw steeper debt increases than households with delayed access. Results indicate that exposure to television advertising increases the tendency to borrow for household goods and the tendency to carry debt. Television access is associated with higher debt levels for durable goods, but not with the total amount of non-mortgage debt. We provide suggestive evidence that increased labor supply may drive our results. The role of media in household debt may be greater than suggested by existing research.

Source: “The Role of Television in Household Debt: Evidence from the 1950’s” from The B.E. Journal of Economic Analysis & Policy

Maybe the best TV series ever.

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Post Information
Title Is there any connection between television and household debt?
Author Eric Barker
Date October 6, 2010 8:02 PM UTC (13 years ago)
Blog bakadesuyo
Archive Link https://theredarchive.com/blog/bakadesuyo/is-there-any-connection-between-television-and.16705
https://theredarchive.com/blog/16705
Original Link https://www.bakadesuyo.com/2010/10/is-there-any-connection-between-television-an/
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