Payday Loans, Uncertainty and Discounting: Explaining Patterns of Borrowing, Repayment, and Default

By P. M. Skiba, Jeremy Tobacman. 2008

171 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/9e1d9b088d98ba1ebd0bb858aee373d54b210c67

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Citations in the corpus

Consumer Inattention and Bill-Shock Regulation (2015, background): “Miao (2010) and Heidhues et al. (2012) show that profits from aftermarket sales are not necessarily competed away in primary market competition because firms cannot set negative prices for primary goods.9 Requiring total prices be nonnegative (the no-free-lunch constraint), I also find that biased…”
Restricting Consumer Credit Access: Household Survey Evidence on Effects around the Oregon Rate Cap (2008, background): “Borrowing fell in Oregon relative to Washington, with former payday borrowers shifting partially into plausibly inferior substitutes: bank overdrafts and late bill payment.”
In Harm's Way? Payday Loan Access and Military Personnel Performance (2008, unknown): “…harms the morale of troops and their families, and adds 1 Potentially relevant behavioral biases include present-biased preferences (Laibson 1997; P. Skiba and Tobacman 2008), over-optimism about future prospects (Brunnermeier and Parker 2005; Browning and Tobacman 2007), and exponential growth…”
Poverty and economic decision making: a review of scarcity theory (2021, unknown): “Lowincome households tend to save too little (Shurtleff 2009), to borrow repeatedly at high-interest rates (Banerjee and Duflo 2007; Skiba and Tobacman 2008), and to spend relatively large parts of money on tobacco, alcohol, and lotteries (Banerjee and Duflo 2007; Blalock et al. 2007; Haisley et…”
How Payday Credit Access Affects Overdrafts and Other Outcomes (2012, background): “Alternatively, if payday credit users are naı̈ve hyperbolic discounters that systematically overestimate their commitment to repay “short-term” loans, access to payday credit might make them worse off (Skiba and Tobacman 2008).”
Naiveté, Projection Bias, and Habit Formation in Gym Attendance (2015, unknown): “Skiba and Tobacman (2008), the only other estimate we could find, use a sample of payday loan borrowers to estimate an almost-identical β̂ = 0.9; however, more work must be done to confirm the regularity of this result.4 The remainder of this paper is organized as follows.”
Exploiting Naïvete about Self-Control in the Credit Market (2010, background): “Finally, Skiba and Tobacman (2007) find that the majority of payday borrowers default on a loan, yet do so only after paying significant costs to service their debt.”
Inferior Products and Profitable Deception (2017, background): “…often have a taste for immediate gratification (Laibson et al., 2007; Augenblick et al., 2015, for instance), that such taste is associated with credit card borrowing (Meier and Sprenger, 2010), and that individuals may be naive about their taste (Laibson et al., 2007; Skiba and Tobacman, 2008).”