The opportunity cost of debt aversion. (Record no. 526332)
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| 000 -LEADER | |
|---|---|
| fixed length control field | 01559nam a22001577a 4500 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION | |
| fixed length control field | 240530b ||||| |||| 00| 0 eng d |
| 100 ## - MAIN ENTRY--PERSONAL NAME | |
| Personal name | Marquina, Alejandro Martínez and Shi, Mike |
| 245 ## - TITLE STATEMENT | |
| Title | The opportunity cost of debt aversion. |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. (IMPRINT) | |
| Place of publication, distribution, etc | The American Economic Review |
| 300 ## - PHYSICAL DESCRIPTION | |
| Extent | 114(4), Apr, 2024: p.1140-1172 |
| 520 ## - SUMMARY, ETC. | |
| Summary, etc | We provide evidence of the existence of debt aversion and its negative implications for financial decisions. In a new experimental design where subjects are assigned debt randomly, we quantify the opportunity cost of subjects' debt-biased decisions. One-third of our participants neglect high returns and focus instead on debt repayments. In addition, borrowing to invest is 50 percent less likely when it leads to indebtedness. On average, participants perceive $1 less in debt as equivalent to $1.03 in savings. Hence, a debt-averse agent will undertake a 10 percent guaranteed investment only if the cost of borrowing does not exceed 6.80 percent.- Reproduced https://www.aeaweb.org/articles?id=10.1257/aer.20221509 |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM | |
| Topical term or geographic name as entry element | Opportunity Cost, Debt Aversion, Financial Decisions, Experimental Design, Random Debt Assignment, Debt-Biased Decisions, High Returns, Debt Repayments, Borrowing to Invest, Indebtedness, Savings Perception, Guaranteed Investment, Cost of Borrowing, Economic Behavior, Risk Assessment, Investment Strategy, Behavioral Finance, Credit Constraints, Decision-Making, Debt Psychology. |
| 9 (RLIN) | 53156 |
| 773 ## - HOST ITEM ENTRY | |
| Main entry heading | The American Economic Review |
| 906 ## - LOCAL DATA ELEMENT F, LDF (RLIN) | |
| Subject DIP | DEBT |
| 942 ## - ADDED ENTRY ELEMENTS (KOHA) | |
| Item type | Articles |
| Withdrawn status | Lost status | Source of classification or shelving scheme | Damaged status | Not for loan | Permanent location | Current location | Date acquired | Serial Enumeration / chronology | Barcode | Date last seen | Koha item type |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Indian Institute of Public Administration | Indian Institute of Public Administration | 2024-05-30 | 114(4), Apr, 2024: p.1140-1172 | AR132082 | 2024-05-30 | Articles |