Intertemporal consumption and debt aversion: A replication and extension

Arbeitspapier

We replicate Meissner (2016) where debt aversion was reported for the first time in an intertemporal consumption and saving problem. While Meissner (2016) uses a German sample, our subjects are US undergraduate students. All of the main findings from the original study replicate, with similar effect sizes. Additionally, we extend the original analysis by correlating a new individual index of debt aversion on individual characteristics such as gender, cognitive ability, and risk aversion. The findings suggest that gender and risk aversion are not correlated with debt aversion. However, cognitive ability is positively correlated with debt aversion. Overall, this paper confirms the importance of debt aversion in intertemporal consumption problems and validates the approach of Meissner (2016).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 2022/1

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Expectations; Speculations ; Portfolio Choice; Investment Decisions ; Behavioral Finance: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets‡
• Subject: Debt Aversion ; Replication ; Experiment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ahrens, Steffen ; Bosch-Rosa, Ciril ; Meissner, Thomas
• Event: Veröffentlichung
• (who): Freie Universität Berlin, School of Business & Economics
• (where): Berlin
• (when): 2022

Further information

• DOI: doi:10.17169/refubium-33314
• Handle: http://hdl.handle.net/10419/249273
• URN: urn:nbn:de:kobv:188-refubium-33593-2
• Last update: 10.03.2025, 11:46 AM CET