This paper studies supply-side product pricing when consumers underreact to non-salient fees. Using comprehensive data on issued and offered mortgages in the UK, I document that lenders differ substantially in the fees they charge, and that borrowers appear less overall cost-sensitive to...

This paper studies supply-side product pricing when consumers underreact to non-salient fees. Using comprehensive data on issued and offered mortgages in the UK, I document that lenders differ substantially in the fees they charge, and that borrowers appear less overall cost-sensitive to...

The authors explore dynamics of limited attention in the $35 billion market for checking overdrafts, using survey content as shocks to the salience of overdraft fees. Conditional on selection into surveys, individuals who face overdraft-related questions are less likely to incur a fee in the...

An expansion in mortgage credit to subprime borrowers is widely believed to have been a principal driver of the 2002–2006 U.S. house price boom. By contrast, this paper documents a robust, negative correlation between the growth in the share of purchase mortgages to subprime borrowers and...

Abstract in German: Auf Basis eines bundesweiten Samples von Honorarberatern und Kunden eruiert diese Studie handlungspolitische Empfehlungen, die zu einer erfolgreichen Etablierung der Honorarberatung in Deutschland beitragen sollen. Mittels einer explorativen Faktoranalyse (EFA) wird zwischen...

While many Americans utilize the banking system to accumulate savings and wealth, over 7 million households do not have access to a basic banking account. A considerable body of scholarship has critically examined this two-tiered structure of consumer banking and called for a system of public...

There is mounting evidence that households make suboptimal savings and investment decisions. For example, Choi, Laibson, and Madrain (2011) show that less-than-optimal contributions to 401(k) plans may lead to more than $500 in financial losses. Agarwal, Skiba, and Tobacman (2009) and Bertrand...

This study uses the 2009 Financial Capability Study dataset to examine the association between individuals' financial literacy and their costly borrowing decisions. The results indicate that financial literacy is indeed negatively associated with costly borrowing behaviors. Other factors such as...

This paper provides novel evidence that consumers react in response to privacy violations, where their personally identifiable information is exposed to unauthorized parties. Exploring privacy breach incidences of U.S. banks, we find that depositors reallocate significant wealth holdings away...

This paper examines whether economic policy uncertainty (EPU) reduces the level of financial inclusion. I predict that high EPU should have a negative effect on the level of financial inclusion. I argue that high EPU will discourage financial institutions from providing basic financial services...