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The Ostrich in Us: Selective Attention to Financial Accounts, Income, Spending, and Liquidity / Arna Olafsson, Michaela Pagel.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Olafsson, Arna.
Contributor:
National Bureau of Economic Research.
Pagel, Michaela.
Series:
Working Paper Series (National Bureau of Economic Research) no. w23945.
NBER working paper series no. w23945
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Ostrich in Us
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2017.
Summary:
We analyze attention to personal financial accounts using panel data that includes logins, spending, income, balances, and credit limits. We find that income arrivals cause individuals to log in and that attention is positively correlated with cash holdings and liquidity, is negatively correlated with consumer debt holdings, and increases when bank account balances change from negative to positive. We discuss how our findings relate to theories of rational and selective inattention and conclude that ostrich effects in a personal finance context, i.e., the fear of paying attention to bank account balances, is a more widespread phenomenon than previously thought.
Notes:
Print version record
October 2017.

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