Grohmann, Antonia; Menkhoff, Lukas; Merkle, Christoph; … - 2023
show suggestive evidence for a link between overconfidence and borrowing behavior in a representative survey of German …, participants can purchase goods by borrowing against their future income. We exogenously manipulate overconfidence about income …. Overconfident participants scale back their consumption after income feedback. However, they remain in higher debt at the end of the …