Credit card debt puzzles

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Haliassos, Michael; Reiter, Michael. Credit card debt puzzles. 2005
http://hdl.handle.net/10230/1226
To cite or link this document: http://hdl.handle.net/10230/1226
dc.contributor.author Haliassos, Michael
dc.contributor.author Reiter, Michael
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2005-11-01
dc.identifier.uri http://hdl.handle.net/10230/1226
dc.description.abstract Most US credit card holders revolve high-interest debt, often combined with substantial (i) asset accumulation by retirement, and (ii) low-rate liquid assets. Hyperbolic discounting can resolve only the former puzzle (Laibson et al., 2003). Bertaut and Haliassos (2002) proposed an 'accountant-shopper'framework for the latter. The current paper builds, solves, and simulates a fully-specified accountant-shopper model, to show that this framework can actually generate both types of co-existence, as well as target credit card utilization rates consistent with Gross and Souleles (2002). The benchmark model is compared to setups without self-control problems, with alternative mechanisms, and with impatient but fully rational shoppers.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 901
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Credit card debt puzzles
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:15Z
dc.subject.keyword Microeconomics
dc.subject.keyword credit cards
dc.subject.keyword debt
dc.subject.keyword self control
dc.subject.keyword household portfolios
dc.rights.accessRights info:eu-repo/semantics/openAccess


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