Time inconsistency and overdraft use: evidence from transaction data and behavioral measurement experiments
- 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.
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| Verfasserangaben: | Andrej GillORCiDGND, Florian HettGND, Johannes Tischer |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-645987 |
| URL: | https://ssrn.com/abstract=4076790 |
| DOI: | https://doi.org/10.2139/ssrn.4076790 |
| Titel des übergeordneten Werkes (Englisch): | SAFE working paper ; No. 347 |
| Schriftenreihe (Bandnummer): | SAFE working paper (347) |
| Verlag: | SAFE |
| Verlagsort: | Frankfurt am Main |
| Dokumentart: | Arbeitspapier |
| Sprache: | Englisch |
| Jahr der Fertigstellung: | 2022 |
| Jahr der Erstveröffentlichung: | 2022 |
| Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Datum der Freischaltung: | 11.04.2022 |
| Freies Schlagwort / Tag: | Behavioral Measurement; Experiment; Fintech; Household Finance; Paycheck Sensitivity; Time Inconsistency; Time Preferences |
| Ausgabe / Heft: | March 31, 2022 |
| Seitenzahl: | 87 |
| HeBIS-PPN: | 495041343 |
| Institute: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
| Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
| DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Lizenz (Deutsch): |  Deutsches Urheberrecht |
