TY  - UNPD
A1  - Gill, Andrej
A1  - Hett, Florian
A1  - Tischer, Johannes
T1  - Time inconsistency and overdraft use: evidence from transaction data and behavioral measurement experiments
T2  - SAFE working paper ; No. 347
N2  - Households regularly fail to make optimal financial decisions. But what are the underlying reasons for this? Using two conceptually distinct measures of time inconsistency based on bank account transaction data and behavioral measurement experiments, we show that the excessive use of bank account overdrafts is linked to time inconsistency. By contrast, there is no correlation between a survey-based measure of financial literacy and overdraft usage. Our results indicate that consumer education and information may not suffice to overcome mistakes in households’ financial decision-making. Rather, behaviorally motivated interventions targeting specific biases in decision-making should also be considered as effective policy tools.
T3  - SAFE working paper - 347 
KW  - Household Finance
KW  - Paycheck Sensitivity
KW  - Fintech
KW  - Time Inconsistency
KW  - Time Preferences
KW  - Experiment
KW  - Behavioral Measurement
Y1  - 2022
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/64598
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-645987
UR  - https://ssrn.com/abstract=4076790
IS  - March 31, 2022
PB  - SAFE
CY  - Frankfurt am Main
ER  -