scholarly journals How Do Individuals Repay Their Debt? The Balance-Matching Heuristic

2019 ◽  
Vol 109 (3) ◽  
pp. 844-875 ◽  
Author(s):  
John Gathergood ◽  
Neale Mahoney ◽  
Neil Stewart ◽  
Jörg Weber
Keyword(s):  
Interest Rate ◽  
Linked Data ◽  
Credit Cards ◽  
Rate Card ◽  
The Cost ◽  
Predictable Variation ◽  
Over Time

We study how individuals repay their debt using linked data on multiple credit cards. Repayments are not allocated to the higher interest rate card, which would minimize the cost of borrowing. Moreover, the degree of misallocation is invariant to the economic stakes, which is inconsistent with optimization frictions. Instead, we show that repayments are consistent with a balance-matching heuristic under which the share of repayments on each card is matched to the share of balances on each card. Balance matching captures more than half of the predictable variation in repayments and is highly persistent within individuals over time. (JEL D14, D15, D91, G41)

The cost of homelessness: Assessing change over time

2003 ◽  
Author(s):  
M. Spano ◽  
P. Toro ◽  
M. Goldstein
Keyword(s):  
Change Over Time ◽  
The Cost ◽  
Over Time

The Internet Trap

2018 ◽  
Author(s):  
Matthew Hindman
Keyword(s):  
The Internet ◽  
Net Neutrality ◽  
The Public ◽  
Attention Economy ◽  
Digital News ◽  
The Cost ◽  
Over Time

The Internet was supposed to fragment audiences and make media monopolies impossible. Instead, behemoths like Google and Facebook now dominate the time we spend online—and grab all the profits from the attention economy. This book explains how this happened. It sheds light on the stunning rise of the digital giants and the online struggles of nearly everyone else—and reveals what small players can do to survive in a game that is rigged against them. The book shows how seemingly tiny advantages in attracting users can snowball over time. The Internet has not reduced the cost of reaching audiences—it has merely shifted who pays and how. Challenging some of the most enduring myths of digital life, the book explains why the Internet is not the postindustrial technology that has been sold to the public, how it has become mathematically impossible for grad students in a garage to beat Google, and why net neutrality alone is no guarantee of an open Internet. It also explains why the challenges for local digital news outlets and other small players are worse than they appear and demonstrates what it really takes to grow a digital audience and stay alive in today's online economy. The book shows why, even on the Internet, there is still no such thing as a free audience.

Value-based dentistry: Putting the patient first

2016 ◽  
Vol 7 (3) ◽  
pp. 126-129 ◽  
Author(s):  
Sreenivas Koka ◽  
Galya Raz
Keyword(s):  
Risk Management ◽  
Quality Improvement ◽  
Quality Of Care ◽  
Dental Care ◽  
Time Cost ◽  
Safety Risk ◽  
The Cost ◽  
Over Time

What does ‘value’ mean? In the context of dental care, it can be defined as the quality of care received by a patient divided by the cost to the patient of receiving that care. In other words: V =Q/C, where Q equals the quality improvement over time, which most patients view in the context of the outcome, the service provided and safety/risk management, and C equals the financial, biological and time cost to the patient. Here, the need for, and implications of, value-based density for clinicians and patients alike are explored.

Confirming Anomalies

2021 ◽  
pp. 2150024
Author(s):  
Peter Chinloy ◽  
Matthew Imes
Keyword(s):  
Capital Structure ◽  
Stock Returns ◽  
Cost Of Capital ◽  
Simultaneous Equations ◽  
Second Stage ◽  
Predicted Values ◽  
The Cost ◽  
Over Time ◽  
Identification Strategy

A procedure confirms whether a return-factor correlation is anomalous or results from endogenous simultaneous-equations bias. The identification strategy sorts the cost of capital components for instruments. In the first stage, the initially found factors are regressed on cost instruments. In the second stage, a confirmed anomaly has predicted value significant in returns and exogenous. Taxes, depreciation and capital structure are strong instruments, affecting 1980–2017 quarterly U.S. stock returns. Size, value and profitability decisions are significant in instruments. Returns increase in fitted profits, but not small size. Actual and predicted values have weaker correlation with returns over time.

Health, Longevity, and Welfare Inequality of Older Americans

2021 ◽  
pp. 1-45
Author(s):  
Ray Miller ◽  
Neha Bairoliya
Keyword(s):  
Expected Utility ◽  
Well Being ◽  
Poor Health ◽  
Cost Of Living ◽  
Cross Sectional ◽  
Older Americans ◽  
The Cost ◽  
Welfare Inequality ◽  
Health And Mortality ◽  
Over Time

Abstract We estimate the distribution of well-being among the older U.S. population using an expected utility framework that incorporates differences in consumption, leisure, health, and mortality. We find large disparities in welfare that have increased over time. Incorporating the cost of living with poor health into elderly welfare substantially increases the overall inequality. Disparity measures based on cross-sectional income or consumption underestimate the growth in aggregate welfare inequality. Moreover, health is a better indicator of an individual's relative welfare position than income or consumption.

Does the impact of the COVID-19 pandemic influence the FX? A note.

2021 ◽  
Vol 15 (2) ◽  
Author(s):  
Evangelos Vasileiou
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Economic Recession ◽  
Interest Rate Risk ◽  
Economic Consequences ◽  
Domestic Currency ◽  
Effective Response ◽  
Policy Makers ◽  
The Cost ◽  
The Impact

This note shows that the effective response of a country in its battle against COVID-19 influences the exchange rate of its currency. Particularly, we examine the GBPUSD, AUDUSD and AUDGBP pairs of currency during the COVID-19 outbreak and the results show that the domestic currency of the country which documents more COVID-19 cases in each pair is depreciated against the foreign one. Therefore, a country which cannot effectively mitigate the impact of COVID-19 and whose currency is depreciated may present further economic consequences in the future. Such consequences extend beyond economic recession and may include sovereign and interest rate risk. These findings may be useful for policy makers in order to estimate the cost of the pandemic.

scholarly journals Credit Card Rates and Consumer Switch: New Evidence

2016 ◽  
Vol 8 (12) ◽  
pp. 95
Author(s):  
Omar A. Abdelrahman
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Credit Card ◽  
Percent Level ◽  
Empirical Finding ◽  
Credit Cards ◽  
Credit Card Market ◽  
The Ohio State University ◽  
Using Data ◽  
Level Of Significance

This paper investigates the underlying determinants of consumer’s choices regarding switching credit-card balances. To estimate the likelihood that consumers switch credit cards, two logit models are estimated. Using data from the Consumer Finance Monthly (CFM) of The Ohio State University, the author finds that at the conventional 5 percent level of significance, the following variables have significance: old interest rate, new interest rate, duration of the introductory rate, balances, number of credit cards, homeownership, and age. As expected, interest rates, balances, the duration of new introductory offer rates, and homeownership have the greatest influence on why or why not people switch credit cards. The findings are consistent with the view that consumers make rational decisions in the credit card market, challenging Ausubel’s (1991) argument of credit card consumer irrationality and Calem and Mester’s (1995) empirical finding that credit card rates are sticky because consumers are irresponsive to rate cuts.

Legume production at Cyrene in the Hellenistic period: epigraphic evidence

2018 ◽  
Vol 49 ◽  
pp. 159-169
Author(s):  
Muna H. Haroun Abdelhamed
Keyword(s):  
General Trend ◽  
Production Capacity ◽  
Hellenistic Period ◽  
Human Diet ◽  
Regional Production ◽  
Legume Production ◽  
The Cost ◽  
Epigraphic Evidence ◽  
Over Time

AbstractLegumes seem to have been cultivated and to have formed an essential part of the human diet during the Greek and Roman periods. This paper examines the cultivation of pulses in Cyrenaica during the Hellenistic era. It considers the regional production capacity for legumes to meet local needs and argues the involvement of different kinds of pulses in interregional commerce alongside cereals and other dry grains. This study has been implemented via investigating Hellenistic epigraphic evidence from Cyrene. It has traced the cost of pulses mentioned in inscriptions of the fourth and third/second centuries BC and compared them with that of wheat and barley. Pulses and cereal costs indicated by Diocletian's ‘Edict on Maximum Prices of AD 301’ have also been investigated to assess the general trend of their prices over time. The examination demonstrates that varieties of pulses were produced in Cyrenaica during the Hellenistic era and were likely as significant as wheat and barley. It also indicates that they were probably traded from the region alongside other dry commodities.

scholarly journals Trends and determinants of raising ECBs in Indian Context

2021 ◽  
Vol 9 (7) ◽  
pp. 01-08
Author(s):  
Ramakant Shukla
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Least Squares Method ◽  
Control Measures ◽  
Capital Control ◽  
Global Liquidity ◽  
Robust Least Squares ◽  
The Exchange Rate ◽  
The Cost ◽  
Interest Rate Differentials

This study examines the effect of capital control measures initiated during the last two decades in terms of all-in-cost ceilings and enhanced limits on ECB in India over the sample period 2004Q1 to 2020Q2. Using global liquidity, the exchange rate between INR/USD, imports and interest rate differentials as control variables and changes in capital control measures from 2008 to 2011 in the all-in-cost ceiling, and changes in the enhanced limits on ECBs from USD 500 million to USD 750 million under the automatic route in 2012, regression analysis of three ECB series show interesting results. Using Robust Least Squares method, we document that (1) the successive increment in all-in-cost ceilings on ECB from 2008 to 2011 is inducing ECBs to flow, indicating that Indian firms benefit more than they pay due to increase the cost for ECBs having maturities 3<5 years. However, such capital control measures are not effective on ECBs having maturities >5 years.  (2) The effect of the enhanced limits on ECBs from USD 500 million to USD 750 million under the automatic route in 2012 has a pronounced impact on ECB, averaging 1602.1 USD million per quarter. We observed that CCAs in India are initiated in response to the volatility of the exchange rate and global liquidity, imports, and interest rate differentials are significant variables in India's required capital control actions.

scholarly journals Monetary Transmission through Interest Rate Channel in Vietnam Before and After the Crisis

2014 ◽  
Vol 222 ◽  
pp. 51-75
Author(s):  
Hương Trầm Thị Xuân ◽  
Vinh Võ Xuân ◽  
CẢNH NGUYỄN PHÚC
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Monetary Transmission ◽  
Var Model ◽  
Macroeconomic Theory ◽  
Cost Channel ◽  
Before And After ◽  
The Cost ◽  
The Impact ◽  
Interest Rate Channel

The paper employs the VAR model to examine the impact of monetary policy on the economy through interest rate channel (IRC) and levels of transmission before and after the 2008 crisis. The results indicate that in the period before the financial crisis, IRC exists in accordance with macroeconomic theory; however, the crisis period, in which increases in SBV monetary policy rates lead to increased inflation, has proved the existence of the cost channel of monetary transmission in Vietnam.

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