Some individuals borrow extensively on their credit cards. This
paper tests whether present-biased time preferences correlate with
credit card borrowing. In a field study, we elicit individual time preferences
with incentivized choice experiments, and match resulting
time preference measures to individual credit reports and annual
tax returns. The results indicate that present-biased individuals are
more likely to have credit card debt, and to have significantly higher
amounts of credit card debt, controlling for disposable income, other
socio-demographics, and credit constraints. (JEL D12, D14, D91)
Meier, Stephan, and Charles Sprenger.
"Present-Biased Preferences and Credit Card Borrowing."
American Economic Journal: Applied Economics,
Consumer Economics: Empirical Analysis
Intertemporal Consumer Choice; Life Cycle Models and Saving