%0 Report
        %A Meier, Stephan
%A Sprenger, Charles
        %T Present-Biased Preferences and Credit Card Borrowing
        %D 2009
        %8 2009 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4198
        %U https://www.iza.org/index.php/publications/dp4198
        %X Some individuals borrow extensively on their credit cards. This paper tests whether present-biased time preferences correlate with credit card borrowing. In a field study, we elicit individual time preferences with incentivized choice experiments, and match resulting time preference measures to individual credit reports and annual tax returns. The results indicate that present-biased individuals are more likely to have credit card debt, and have significantly higher amounts of credit card debt, controlling for disposable income, other socio-demographics, and credit constraints.
        %K field experiment
%K credit card borrowing
%K dynamic inconsistency
%K time preferences