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Replication data for: Borrowing on the Wrong Credit Card? Evidence from Mexico

Resource Type
  • Ponce, Alejandro
  • Seira, Enrique
  • Zamarripa, Guillermo
Publication Date
  • Abstract

    We establish new facts about the way consumers allocate debt among their credit cards using data for a representative sample of cardholders in Mexico. We find that relative prices are weak predictors of the allocation of debt, purchases, and payments. Consumers allocate a large fraction of their debt to high-interest cards, incurring a cost of 31 percent above the minimum. Using an experiment, we find that consumers do not substitute in the price margin, although they respond to salient temporary low-interest offers. We conclude that limited attention and mental accounting best rationalize our results and discuss implications for the market.
  • Is supplement to
    DOI: 10.1257/aer.20120273 (Text)
  • Ponce, Alejandro, Enrique Seira, and Guillermo Zamarripa. “Borrowing on the Wrong Credit Card? Evidence from Mexico.” American Economic Review 107, no. 4 (April 2017): 1335–61.
    • ID: 10.1257/aer.20120273 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-06

Ponce, Alejandro; Seira, Enrique; Zamarripa, Guillermo (2017): Replication data for: Borrowing on the Wrong Credit Card? Evidence from Mexico. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.