Our paper entitled “The Labor Market Effects of Credit Market Information” together with Emily Breza and Andres Liberman was accepted for publication in The Review of Financial Studies.
follow link The Labor Market Effects of Credit Information, buy Finax 1mg online Review of Financial Studies, Forthcoming.
Coauthors: Andres Liberman and Emily Breza.
Paper | NBER Working Paper | Abstract
We exploit a natural experiment to provide one of the first measurements of the causal effect of negative credit information on employment and earnings. We estimate that one additional year of negative credit information reduces employment by 3 percentage points and wage earnings by $1,000. In comparison, the decrease in credit is only one-fourth as large. Negative credit information also causes an increase in self-employment and a decrease in mobility. Further evidence suggests this cost of default is borne inefficiently by the relatively more creditworthy individuals among previous defaulters
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
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.
Keywords: household finance, behavioral finance, time inconsistent preferences, commitment mechanisms, alcohol, consumer credit
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