DEBT · Eliciting Preferences over Saving and Borrowing
„Хоризонт 2020“ — Действия „Мария Склодовска-Кюри“
- Период
- 2018-09-01 → 2020-08-31
- Финансиране от ЕС
- 165 599 €
- Участници
- 1
- Схема
- MSCA-IF
Линиите свързват координатора с партньорите.
Накратко на български
Решенията за спестяване и заемане на пари, като например страхът от дългове дори при изгодни условия, се анализират на индивидуално ниво. Разбирането на тези процеси помага да се разбере защо хората вземат определени финансови решения и как те се влияят от риска и времето.
Кратко обяснение, генерирано от езиков модел по текста на CORDIS. Оригиналът е по-долу.
Резултати накратко
Eliciting Preferences over Saving and Borrowing
Borrowing and saving decisions are among the most important and economically significant choices people face in their lifetime. An unwillingness to save may have severe economic implications such as insufficient retirement savings. In the same way, borrowing too much or too little can have negative economic implications. Debt aversion, defined as an unwillingness to take on debt even if economically beneficial, has received increased attention by researchers lately, for its adverse effects on financial decision-making, such as preventing optimal portfolio choice or a failure to invest in profitable investment projects. While recent experimental studies do find evidence supporting the general existence of debt aversion on an aggregate level, this phenomenon remains poorly understood on the individual level. No study so far explicitly measures individual differences in the degree of debt aversion. Moreover, debt aversion is likely to interact with other domains of preference, such as preferences over time, risk and losses. These links have not yet been analyzed, neither theoretically nor empirically. The overall aim of this project was thus to significantly enhance the understanding of borrowing and saving decisions. Specifically, this project aimed to establish whether preferences over saving and borrowing (such as debt aversion) are preferences in their own right, that cannot be explained with other preferences such as preferences over time, risk and losses. Further, this project aimed to explore how preferences over saving and borrowing interact with other domains of preferences, such as risk and time preferences.
Текст от CORDIS, на английски · Данни: CORDIS, © Европейски съюз
Цел на проекта
Attitudes towards saving and borrowing are crucial to the understanding of individual financial behavior. An unwillingness to save or borrow can have severe economic implications, such as preventing optimal portfolio choice, insufficient retirement saving, or a failure to invest in profitable investment projects. To further the understanding of borrowing and saving behavior, I am proposing to develop an experimental protocol that allows to measure individual preferences over saving and borrowing. In particular, I will develop an intertemporal choice list, in which subjects can choose between different saving and debt contracts, using real monetary incentives. Subject’s decisions in this choice experiment can be used to infer individual differences in preferences over saving and borrowing. To control for confounds, and to identify how preferences over borrowing and saving interact with preferences over risk, time and losses, I will also elicit these preferences experimentally, and estimate all domains of preference jointly. For this purpose, I will write a formal model that extends cumulative prospect theory, to incorporate preferences over saving and borrowing. Along with the experiment, I plan to elicit a number of different novel survey measures regarding participants’ borrowing behavior and experience, and identify those that best predict behavior in the incentivized choice experiments. Identifying simple survey measures that explain preferences over saving and borrowing will be of help for future research on these preferences, where time and monetary constraints do not allow a fully incentivized experiment.
Оригинален текст от CORDIS (на английски).
Участници
- UNIVERSITEIT MAASTRICHT · MaastrichtКоординаторНидерландия
Връзки
Данни: CORDIS, © Европейски съюз