Financial Literacy, Present Bias and Alternative Mortgage Products
Sign Up to like & getrecommendations! Published in 2017 at "Journal of Banking and Finance"
DOI: 10.1016/j.jbankfin.2017.01.022
Abstract: Choosing a mortgage is one of the most important financial decisions made by a household. Financial innovation has given rise to more complex mortgage products with back-loaded payments, known as ‘Alternative Mortgage Products’ (AMPs), or… read more here.
Keywords: mortgage; literacy present; present bias; mortgage products ... See more keywords
How present bias forestalls energy efficiency upgrades: A study of household appliance purchases in India
Sign Up to like & getrecommendations! Published in 2018 at "Journal of Cleaner Production"
DOI: 10.1016/j.jclepro.2018.03.100
Abstract: Abstract This paper investigates household decision-making behaviour in the market for energy-efficient lighting and appliances in Delhi, India to study the energy efficiency gap using the inter-disciplinary framework of behavioural economics. A primary dataset of… read more here.
Keywords: present bias; energy efficiency; energy efficient; energy ... See more keywords
Sticking to your plan: The role of present bias for credit card paydown
Sign Up to like & getrecommendations! Published in 2020 at "Journal of Financial Economics"
DOI: 10.1016/j.jfineco.2020.08.002
Abstract: Using high-frequency transaction-level income, spending, balances, and credit limits data from an online financial service, we show that many consumers fail to stick to their self-set debt paydown plans and argue that this behavior is… read more here.
Keywords: present bias; sticking plan; role present; bias ... See more keywords
Identifying Present Bias from the Timing of Choices
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DOI: 10.1257/aer.20191258
Abstract: A (partially naïve) quasi-hyperbolic discounter repeatedly chooses whether to complete a task. Her net benefits of task completion are drawn independently between periods from a time-invariant distribution. We show that the probability of completing the… read more here.
Keywords: task; bias timing; timing choices; present bias ... See more keywords