TY  - RPRT
        AU  - Meier, Stephan
AU  - Sprenger, Charles
        TI  - Present-Biased Preferences and Credit Card Borrowing
        PY  - 2009/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4198
        UR  - https://www.iza.org/index.php/publications/dp4198
        AB  - 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.
        KW  - field experiment
KW  - credit card borrowing
KW  - dynamic inconsistency
KW  - time preferences
        ER  -