Li, Geng; Smith, Paul A. - In: National Tax Journal 63 (2010) 3, pp. 479-508
We show in a simple model that households will choose 401(k) loans over other consumer loans if the opportunity cost of 401(k) loans — i.e., the foregone asset returns — is less than the cost of other loans, and that few households would carry high-cost consumer debt without first utilizing...