Payday loans, uncertainty and discounting: Explaining patterns of borrowing, repayment, and default

PM Skiba, J Tobacman - Vanderbilt Law and Economics Research …, 2008 - papers.ssrn.com
… by high (exponential or hyperbolic) discount rates or by large, … borrowing repeatedly on
payday loans. The median number of loans taken in the year after an individualis first loan (…

[PDF][PDF] Payday Loans, Uncertainty, and Discounting: Explaining Patterns of Borrowing, Repayment, and Default job market paper

PM Skiba, J Tobacman - 2007 - economics.sas.upenn.edu
… by high (exponential or hyperbolic) discount rates or by large, … borrowing repeatedly on
payday loans. The median number of loans taken in the year after an individualis first loan (…

Let the borrower beware: towards a framework for debiasing rollover behavior in the payday loan industry

TR Harmon-Kizer - Journal of Consumer Policy, 2019 - Springer
… payments, many consumers default of their loans, forcing them … discounting are discussed
in the context of payday loan … to evaluate uncertainty better, and providing minimum payment

A Bayesian analysis of payday loans and their regulation

M Li, KJ Mumford, JL Tobias - Journal of Econometrics, 2012 - Elsevier
… They find that quasi-hyperbolic discounting models perform … If a borrower defaults on the
loan, the payday lender makes … monotonic pattern, 15 and indicate that those renewing the loan

Poor Consumer (s) Law: The Case of High-Cost Credit and Payday Loans

S Becher, Y Feldman, O Lobel - … of Marketing and the Law (CUP …, 2018 - papers.ssrn.com
… practices, we begin by pointing to the main behavioral patterns … The terms “myopia” and
“time/hyperbolic discounting” also … In payday loans, it is worth considering making the default of …

Balancing act: New evidence and a discussion of the theory on the rationality and behavioral anomalies of choice in credit markets

M Bos, SP Carter, PM Skiba - Research Handbook on Behavioral …, 2018 - elgaronline.com
… a payday loan are less likely to use pawnshop loans within … person, if one examines
discounting at the daily level (which … follow these time-consistent patterns, and that people exhibit …

An experimental analysis of the demand for payday loans

BJ Wilson, DW Findlay, JW Meehan Jr… - The BE Journal of …, 2010 - degruyter.com
… and survive financial setbacks with uncertain and unforeseeable … A similar pattern of results
occurs when subjects were … not capture the discounting behavior that payday loan customers …

Time to repay or time to delay? the effect of having more time before a payday loan is due

SP Carter, K Liu, PM Skiba, J Sydnor - American Economic Journal …, 2022 - aeaweb.org
… , even exponential discounting with extreme discount rates … and principal must be repaid so
that default is not an option. … how initial loan durations affect the patterns of debt repayment. …

Regulation of payday loans: Misguided

PM Skiba - Wash. & Lee L. Rev., 2012 - HeinOnline
… Hyperbolic discounting suggests that consumers mispredict their time … 5 5 We examined
patterns of … terms are clear, borrowers' future behavior is murky and uncertain. Few borrowers …

Borrowing

S Agarwal, W Qian, R Tan, S Agarwal, W Qian… - Household Finance: A …, 2020 - Springer
… optimal debt contracts and whether they default optimally. … borrower is unable to repay, such
as mortgages and vehicle … other cheaper forms of financing take out payday loans. They are …