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If individuals have self-control problems, they may take up commitment contracts that restrict their spending. We experimentally investigate how contract design affects the demand for commitment contracts. Each participant divides money between a liquid account, which permits unrestricted...
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I design a debt relief experiment that randomizes forbearance term and interest rates independently in a 2-by-2-by-2 design for delinquent borrowers. Forbearance take-up prevents one in three defaults in the first month with no long-run effects beyond expiration. Before expiration forbearance...
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inflation and interest rates prior to deciding on a consumption path. We decompose the total change in consumption that results … from changes in either interest rates or inflation rates into anticipation and impact effects. While impact effects are of … similar orders of magnitude as in the model, future changes in inflation or interest rates exert substantially smaller effects …
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