Debt Aversion: Anomalous in Theory, Advantageous in Practice

Attitudes towards debt critically influence a variety of financial behaviors. We show that debt aversion is associated with negative discounting for losses, the gain-loss asymmetry and other anomalous behavior. In contrast, a field study shows that debt aversion has advantages: individuals reporting higher debt aversion have better credit scores.



Citation:

Daniel Walters, Carsten Erner, Craig Fox, Marc Scholten, Daniel Read, and Christopher Trepel (2016) ,"Debt Aversion: Anomalous in Theory, Advantageous in Practice", in NA - Advances in Consumer Research Volume 44, eds. Page Moreau, Stefano Puntoni, and , Duluth, MN : Association for Consumer Research, Pages: 179-184.

Authors

Daniel Walters, University of California Los Angeles, USA
Carsten Erner, University of California Los Angeles, USA
Craig Fox, University of California Los Angeles, USA
Marc Scholten, Universidade Europeia
Daniel Read, Warwick Business School
Christopher Trepel, Fenway Summer LLC



Volume

NA - Advances in Consumer Research Volume 44 | 2016



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