- AEA, January, 2018, Session accepted titled ‘The Demand for Commitment Devices’.
Session Title: The Demand for Commitment Devices
Session Organizer: Marieke Bos, Stockholm School of Economics, Swedish House of Finance
Presiding Chair: Douglas Bernheim – Stanford University
Paper 1 title: LOOSE KNOTS: STRONG VERSUS WEAK COMMITMENTS TO SAVE FOR EDUCATION IN UGANDA Dean Karlan, Yale University, Leigh Linden, The University of Texas at Austin
Paper 2 title: MYOPIA AND DISCOUNTING
Xavier Gabaix, Harvard University, David Laibson, Harvard University
Paper 3 title: Impulsive Consumption and Financial Wellbeing: Evidence from an Expansion in the Supply of Alcohol
Itzhak Ben-David, The Ohio State University, Fisher College of Business, Marieke Bos (email@example.com) – Stockholm School of Economics, Swedish House of Finance
Paper 4 title: Do Cues Trigger the Use of Addictive Goods? Evidence from the Removal of Slot Machines from Bars
Vyacheslav Mikhed Federal Reserve Bank of Philadelphia, Barry Scholnick, Alberta School of Business, University of Alberta, Hyungsuk Byun Government of Alberta
Discussant #1: Emily Breza – Harvard University Discussant #2: Frank Schilbach, MIT, Discussant #3: Bruce Carlin – University of California, Los Angeles (UCLA) – Anderson School of Management, Discussant #4: Brigitte Madrian- Harvard University, Kennedy School
our paper Economic Scarcity and Consumers’ Credit Choice will be presented, together with Peter van Santen and Chloe le Coq.
Presenting Impulsive Consumption and Financial Wellbeing: Evidence from an Increase in the Availability, together with Itztak Ben David from Ohio State University.
I have a new working paper out
Impulsive Consumption and Financial Wellbeing: Evidence from an Increase in the Availability of Alcohol
together with Itzhak Ben-David , Ohio State University – Fisher College of Business, Finance Department; National Bureau of Economic Research (NBER)
Increased availability of temptation goods might harm individuals if they have time-inconsistent preferences and consume more in the present than planned before. We study this idea by examining the credit behavior of low-income households around the expansion of the opening hours of retail liquor stores during a nationwide experiment in Sweden. Consistent with store closures serving as commitment devices, expanded operating hours led to higher alcohol consumption (Nordström and Skog 2003) and greater consumer credit uptake and default. Thus, our results show that limiting the availability of temptation goods can improve the financial wellbeing of individuals with inconsistent-time preferences.
JEL Classification: D03, D12, I18, L51, L66
Ben-David, Itzhak and Bos, Marieke, Impulsive Consumption and Financial Wellbeing: Evidence from an Increase in the Availability of Alcohol (February 21, 2017). Fisher College of Business Working Paper No. 2017-03-006. Available at SSRN: https://ssrn.com/abstract=2921237
December 2016 I received a new grant of 2.2 MSEK from VINNOVA for our project titled “Sustainable Consumption and Behavioral Finance”
See link to the VINNOVA’s website and the project here