1 option
Borrowing High vs. Borrowing Higher: Sources and Consequences of Dispersion in Individual Borrowing Costs / Victor Stango, Jonathan Zinman.
- Format:
- Book
- Author/Creator:
- Stango, Victor.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w19069.
- NBER working paper series no. w19069
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2013.
- Summary:
- We document cross-individual variation in U.S. credit card borrowing costs (APRs) that is large enough to explain substantial differences in household saving rates. Borrower default risk and card characteristics explain roughly 40% of APRs. The remaining dispersion exists because a borrower can receive offers and hold cards with wide-ranging APRs, as different issuers price the same observable risk metrics quite differently. Borrower debt (mis)allocation across cards explains little dispersion. But self-reported borrower search/shopping (along with instruments for shopping implied by Fair Lending law) can explain APR differences comparable to moving someone from the worst credit score decile to the best.
- Notes:
- Print version record
- May 2013.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.