Where is the missing credit card debt? Clues and implications
AbstractJonathan Zinman, an assistant professor of economics at Dartmouth College and a visiting scholar with the Payment Cards Center, makes a casual comparison of industry and household data sets which suggests that households underreport credit card borrowing by a factor of three. This paper offers some reassurance and several new stylized facts. Accounting for differences in definitions between household and industry measures reduces debt underreporting to a factor of two. Underreporting is less severe for general-purpose than for other cards. The true underreporting factor has remained stable over the past 15 years, even as 26 million households entered the market. Households report charges and account holding relatively accurately.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Philadelphia in its series Payment Cards Center Discussion Paper with number 07-11.
Date of creation: 2007
Date of revision:
Other versions of this item:
- Jonathan Zinman, 2009. "Where Is The Missing Credit Card Debt? Clues And Implications," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(2), pages 249-265, 06.
- NEP-ALL-2007-12-01 (All new papers)
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11-17, Federal Reserve Bank of Philadelphia.
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"Expanding Microenterprise Credit Access: Using Randomized Supply Decisions to Estimate the Impacts in Manila,"
976, Economic Growth Center, Yale University.
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- Victor Stango & Jonathan Zinman, 2009. "What Do Consumers Really Pay on Their Checking and Credit Card Accounts? Explicit, Implicit, and Avoidable Costs," American Economic Review, American Economic Association, vol. 99(2), pages 424-29, May.
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