Targeted Debt Relief and the Origins of Financial Distress: Experimental Evidence from Distressed Credit Card Borrowers

@inproceedings{Dobbie2017TargetedDR,
  title={Targeted Debt Relief and the Origins of Financial Distress: Experimental Evidence from Distressed Credit Card Borrowers},
  author={Will Dobbie and Jae Song},
  year={2017}
}
We study the drivers of financial distress using a large-scale field experiment that offered randomly selected borrowers a combination of (i) immediate payment reductions to target shortrun liquidity constraints and (ii) delayed debt write-downs to target long-run debt constraints. We identify the separate effects of the payment reductions and write-downs using variation from both the experiment and cross-sectional differences in treatment intensity. Surprisingly, we find that the debt write… CONTINUE READING

References

Publications referenced by this paper.
SHOWING 1-10 OF 46 REFERENCES

Similar Papers

Loading similar papers…