Telyukova, Irina A. - In: Review of Economic Studies 80 (2013) 3, pp. 1148-1177
In the 2001 U.S. Survey of Consumer Finances, 27% of households report simultaneously revolving significant credit card debt and holding sizeable amounts of low-return liquid assets; this is known as the "credit card debt puzzle". In this article, I quantitatively evaluate the role of liquidity...