D`Acunto, Francesco, Rauter, Thomas, Scheuch, Christoph, Weber, Michael. 2019. Perceived Precautionary Savings Motives: Evidence from FinTech.

RIS

@MISC{D`Acunto2019,
title = {Perceived Precautionary Savings Motives: Evidence from FinTech},
author = {Francesco D`Acunto and Thomas Rauter and Christoph Scheuch and Michael Weber},
year = {2019},
url = {https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3499013},
language = {EN},
abstract = {We study the spending response of first-time borrowers to an overdraft facility and elicit their preferences, beliefs, and motives through a FinTech application. Users increase their spending permanently, lower their savings rate, and reallocate spending from non-discretionary to discretionary goods. Interestingly, liquid users react more than others but do not tap into negative deposits. The credit line acts as a form of insurance. These results are not fully consistent with models of financial constraints, buffer stock models, or present-bias preferences. We label this channel perceived precautionary savings motives: Liquid users behave as if they faced strong precautionary savings motives even though no observables, including elicited preferences and beliefs, suggest they should.},
}