My da|ra Login

Detailed view

metadata language: English

Code for: Targeted Debt Relief and the Origins of Financial Distress: Experimental Evidence from Distressed Credit Card Borrowers

Version
V0
Resource Type
Dataset : program source code
Creator
  • Dobbie, Will (Harvard Kennedy School and NBER)
  • Song, Jae (Social Security Administration)
Publication Date
2019-12-30
Funding Reference
  • Washington Center for Equitable Growth
Description
  • Abstract

    We study the drivers of financial distress using a large-scale field experiment that offered randomly selected borrowers a combination of (i) immediate payment reductions to target short-run liquidity constraints and (ii) delayed interest write-downs to target long-run debt constraints. We identify the separate effects of the payment reductions and interest write-downs using both the experiment and cross-sectional variation in treatment intensity. We find that the interest write-downs significantly improved both financial and labor market outcomes, despite not taking effect for three to five years. In sharp contrast, there were no positive effects of the more immediate payment reductions. These results run counter to the widespread view that financial distress is largely the result of short run constraints.
Temporal Coverage
  • 2004-01-01 / 2015-12-31
    Time Period: Thu Jan 01 00:00:00 EST 2004--Thu Dec 31 00:00:00 EST 2015 (Main Data Window)
Geographic Coverage
  • USA
Availability
Download
Publications
  • Dobbie, Will, and Jae Song. “Targeted Debt Relief and the Origins of Financial Distress: Experimental Evidence from Distressed Credit Card Borrowers.” American Economic Review, n.d.

Update Metadata: 2020-03-23 | Issue Number: 1 | Registration Date: 2020-03-23

Dobbie, Will; Song, Jae (2019): Code for: Targeted Debt Relief and the Origins of Financial Distress: Experimental Evidence from Distressed Credit Card Borrowers. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E114987