Arbeitspapier
Borrowing on the wrong credit card: Evidence from Mexico
We study how consumers allocate debt across credit cards they already hold using new data on credit card activity for a representative sample of consumers with two homogeneous cards in Mexico. We find that relative prices are a very weak predictor of the allocation of debt, purchases, and payments. On average, consumers pay 31% above their minimum financing cost. Evidence on cross-card debt elasticities with respect to interest rates and credit limits show no substitution in the price margin. Our findings offer evidence against the cost-minimizing hypothesis and provide support to behavioral explanations.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Papers ; No. 2014-03
- Klassifikation
-
Wirtschaft
Consumer Economics: Empirical Analysis
Household Saving; Personal Finance
Market Structure, Pricing, and Design: General
Financial Institutions and Services: General
Financial Institutions and Services: Government Policy and Regulation
- Thema
-
credit cards
household finance
consumer behavior
Mexico
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ponce, Alejandro
Seira, Enrique
Zamarripa, Guillermo
- Ereignis
-
Veröffentlichung
- (wer)
-
Banco de México
- (wo)
-
Ciudad de México
- (wann)
-
2014
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ponce, Alejandro
- Seira, Enrique
- Zamarripa, Guillermo
- Banco de México
Entstanden
- 2014
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