My da|ra Login

Detailed view

metadata language: English

Replication data for: How Do Individuals Repay Their Debt? The Balance-Matching Heuristic

Version
V0
Resource Type
Dataset
Creator
  • Gathergood, John
  • Mahoney, Neale
  • Stewart, Neil
  • Weber, Jörg
Publication Date
2019-03-01
Description
  • Abstract

    We study how individuals repay their debt using linked data on multiple credit cards. Repayments are not allocated to the higher interest rate card, which would minimize the cost of borrowing. Moreover, the degree of misallocation is invariant to the economic stakes, which is inconsistent with optimization frictions. Instead, we show that repayments are consistent with a balance-matching heuristic under which the share of repayments on each card is matched to the share of balances on each card. Balance matching captures more than half of the predictable variation in repayments and is highly persistent within individuals over time.
Availability
Download
Relations
  • Is supplement to
    DOI: 10.1257/aer.20180288 (Text)
Publications
  • Gathergood, John, Neale Mahoney, Neil Stewart, and Jörg Weber. “How Do Individuals Repay Their Debt? The Balance-Matching Heuristic.” American Economic Review 109, no. 3 (March 2019): 844–75. https://doi.org/10.1257/aer.20180288.
    • ID: 10.1257/aer.20180288 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Gathergood, John; Mahoney, Neale; Stewart, Neil; Weber, Jörg (2019): Replication data for: How Do Individuals Repay Their Debt? The Balance-Matching Heuristic. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116207