Increased availability of alcohol may harm individuals if they have present-focused preferences and consume more than initially planned. Using a nationwide experiment in Sweden, we study the credit behavior of low-income households around the expansion of liquor stores' operating hours on...

This paper documents that increased scarcity right before a payday causally impacts credit choices. Exploiting a transfer system that randomly assigns the number of days between paydays to Swedish social welfare recipients, we find that low educated borrowers behave as if they are more...

This paper documents that high-educated borrowers choose lower loan to valueratios when their budget constraints are exogenously tighter. In contrast, low-educatedborrowers do not respond to temporary elevated levels of scarcity. This lack of responsetranslates into a significantly higher...

We exploit a natural experiment to measure the causal effect of negative credit information on the employment and earnings of Swedish individuals at the margins of formal credit and labor markets. We estimate that one additional year of negative credit information reduces employment by 3% and...

In this paper we study whether consumers optimally choose between formal and informal credit, using a unique panel dataset with all registered information available on consumers' behavior within the Swedish alternative and mainstream credit markets. Specifically, we analyze to what extent credit...