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Impulsive Consumption and Financial Wellbeing : Evidence from an Increase in the Availability of Alcohol Preview this item
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Impulsive Consumption and Financial Wellbeing : Evidence from an Increase in the Availability of Alcohol

Author: Itzhak Ben-David; Marieke Bos; National Bureau of Economic Research.
Publisher: Cambridge, Mass. National Bureau of Economic Research 2017.
Series: Working paper series (National Bureau of Economic Research), no. w23211.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Increased availability of temptation goods might harm individuals if they have time-inconsistent preferences and consume more in the present than planned before. We study this idea by examining the credit behavior of low-income households around the expansion of the opening hours of retail liquor stores during a nationwide experiment in Sweden. Consistent with store closures serving as commitment devices, expanded  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Itzhak Ben-David; Marieke Bos; National Bureau of Economic Research.
OCLC Number: 1008872180
Notes: March 2017.
Description: 1 online resource
Series Title: Working paper series (National Bureau of Economic Research), no. w23211.
Responsibility: Itzhak Ben-David, Marieke Bos.

Abstract:

Increased availability of temptation goods might harm individuals if they have time-inconsistent preferences and consume more in the present than planned before. We study this idea by examining the credit behavior of low-income households around the expansion of the opening hours of retail liquor stores during a nationwide experiment in Sweden. Consistent with store closures serving as commitment devices, expanded operating hours led to higher alcohol consumption (Nordström and Skog 2003) and greater consumer credit uptake and default. Thus, our results show that limiting the availability of temptation goods can improve the financial wellbeing of individuals with inconsistent time preferences.

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