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I design a large-scale field experiment that constructs a randomized credit limit extension isolating selection … by the third year. The effects extend to those far from the limit, those who had the new limits as available credit, and …
Persistent link: https://www.econbiz.de/10013238323
-driven consumption boom, in which I construct a randomized credit line extension that isolates selection and interest rate effects, and … effects of credit, and that the propensity to borrow and spend out of credit remains quantitatively large for those with … in response to a credit constraint that may bind in the future; and the other invoking behavioral explanations based on …
Persistent link: https://www.econbiz.de/10012828206
Recent survey evidence suggests that investors form beliefs about future stock returns by predominantly extrapolating their own experience: They overweight returns they have personally experienced while underweighting returns from earlier years and consequently expect high (low) stock market...
Persistent link: https://www.econbiz.de/10014490050
We show that perceptions of relative rank in the wealth distribution shape individuals' willingness to take risks. Using a representative large-scale survey, we manipulate perceptions of relative standing by randomly varying response categories when asking respondents about their wealth level....
Persistent link: https://www.econbiz.de/10012603175
This paper studies strategic default using an experimental approach. The experiment considers a stochastic asset process and a loan with no down-payment. The treatments are two asset volatilities (high and low) and the absence and presence of social interactions via a direct effect on the...
Persistent link: https://www.econbiz.de/10013075560
Persistent link: https://www.econbiz.de/10011825084
Persistent link: https://www.econbiz.de/10012138606
Purpose The chapter studies strategic default using an experimental approach. Design/methodology/approach The experiment considers a stochastic asset process and a loan with no down-payment. The treatments are two asset volatilities (high and low) and the absence and presence of social...
Persistent link: https://www.econbiz.de/10015369677
According to the expectations channel, a fiscal consolidation may give rise to less contractionary, or even expansionary effects on consumption, despite a decline in current disposable income. Intuitively, people may accumulate a stock of savings in anticipation of the consolidation and may...
Persistent link: https://www.econbiz.de/10010509128
We report on a series of economic decision-making experiments exploring how individuals make lifecycle consumption and saving plans when they face different income profiles. We find that for every income profile we consider, subjects on average over-consume in the early periods of life and...
Persistent link: https://www.econbiz.de/10012935378