| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w25668 |
| 来源ID | Working Paper 25668 |
| Monthly Payment Targeting and the Demand for Maturity | |
| Bronson Argyle; Taylor D. Nadauld; Christopher Palmer | |
| 发表日期 | 2019-03-18 |
| 出版年 | 2019 |
| 语种 | 英语 |
| 摘要 | In this paper, we provide evidence of the importance of monthly payments in the market for consumer installment debt. Auto debt in particular has grown rapidly since the Great Recession and has eclipsed credit cards in total debt outstanding. Auto-loan maturities have also increased such that most auto-loan originations now have a term of over 72 months. We document three phenomena we jointly refer to as monthly payment targeting. First, using data from 500,000 used auto loans and discontinuities in contract terms offered by hundreds of lenders, we show that demand is more sensitive to maturity than interest rate, consistent with consumers managing payment size when making debt decisions. Second, many consumers appear to employ segregated mental accounts, spending exogenous payment savings on larger loans. Third, consumers bunch at round-number monthly payment amounts, consistent with the use of budgeting heuristics. These patterns hold in subsamples of constrained and unconstrained borrowers, challenging liquidity constraints as a complete explanation. Our estimates suggest that borrower focus on payment size, combined with credit-supply shocks to maturity, could significantly affect aggregate outstanding debt. |
| 主题 | Microeconomics ; Households and Firms ; Behavioral Economics ; Macroeconomics ; Money and Interest Rates ; Monetary Policy ; Financial Economics ; Financial Institutions ; Behavioral Finance ; Public Economics ; Taxation ; Industrial Organization ; Industry Studies ; Other ; Accounting, Marketing, and Personnel |
| URL | https://www.nber.org/papers/w25668 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/583341 |
| 推荐引用方式 GB/T 7714 | Bronson Argyle,Taylor D. Nadauld,Christopher Palmer. Monthly Payment Targeting and the Demand for Maturity. 2019. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w25668.pdf（1273KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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