Behavioral finance is still mostly perceived as a field solely devoted to the study of asset pricing and behavior of individual investors. This interpretation to a large extent is misleading as it overlooks a growing body of empirical work in household finance, a subfield of behavioral finance concerned with household investment and borrowing decisions. By focusing on household under-saving, non-participation, and under-diversification, as well as mistakes in choosing debt contracts and managing debt obligations, this paper aims at presenting recent findings in household finance to a wide audience. This review differs from the existent ones as it focuses on the plurality of non-mutually exclusive explanations of the observed phenomena, including those that come from the competing research traditions. The special emphasis is made on the choice between fixed rate and adjustable rate mortgages, given its significance for macrofinancial stability. The review also discusses the evidence indicating that firms are aware of households’ behavioral weaknesses and readily exploit them.
Agarwal, S., Amromin, G., Ben-David, I., Chomsisengphet, S., Evanoff, D. D. (2014a). Predatory lending and the subprime crisis. Journal of Financial Economics, 113(1), 29-52. https://doi.org/10.1016/j.jfineco.2014.02.008
Agarwal, S., Amromin, G., Ben-David, I., Chomsisengphet, S., Evanoff, D. D. (2014b). The effectiveness of mandatory mortgage counseling: can one dissuade borrowers from choosing risky mortgages? Working Paper, 19920. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w19920
Agarwal, S., Amromin, G., Ben-David, I., Evanoff, D. D. (2016). Loan product steering in mortgage markets. Working Paper, 22696. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w22696
Agarwal, S., Chomsisengphet, S., Lim, C. (2017). What shapes consumer choice and financial products? A review. Annual Review of Financial Economics, 9, 127-146. https://doi.org/10.1146/annurev-financial-110716-032417
Agarwal, S., Chomsisengphet, S., Liu, C., Souleles, N. S. (2015a). Do consumers choose the right credit contracts? Review of Corporate Finance Studies, 4(2), 239-257. https://doi.org/10.1093/rcfs/cfv003
Agarwal, S., Rosen, R. J., Yao, V. (2015b). Why do borrowers make mortgage refinancing mistakes? Management Science, 62(12), 3494-3509. https://doi.org/10.1287/mnsc.2015.2272
Agarwal, S., Skiba, P. M., Tobacman, J. (2010). Payday loans and credit cards: new liquidity and credit scoring puzzles? Working Paper, 14659. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w14659
Akerlof, G. A., Kranton, R. E. (2010). Identity economics: how identities shape our work, wages, and well-being. Princeton: Princeton University Press.
Albacete, N., Fessler, P., Schürz, M. (2012). Risk buffer profiles of foreign currency mortgage holders. Financial Stability Report, 23, 58-71.
Albacete, N., Lindner, P. (2015). Foreign currency borrowers in Austria – evidence from the Household Finance and Consumption Survey. Financial Stability Report, 29, 93-109.
Anderloni, L., Bacchiocchi, E., Vandone, D. (2012). Household financial vulnerability: an empirical analysis. Research in Economics, 66(3), 284-296. https://doi.org/10.1016/j.rie.2012.03.001
Andersen, S., Campbell, J. Y., Nielsen, K. M., Ramadorai, T. (2017). Inattention and inertia in household finance: evidence from the Danish mortgage market. Working Paper, 21386. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w21386
Andersen, S., Hanspal, T., Nielsen, K. M. (2016). Once bitten, twice shy: the role of inertia and personal experiences in risk taking. CEPR Discussion Paper, DP11504. https://doi.org/10.2139/ssrn.2506627
Anderson, A. (2013). Trading and under-diversification. Review of Finance, 17(5), 1699-1741. https://doi.org/10.1093/rof/rfs044
Badarinza, C., Campbell, J. Y., Ramadorai, T. (2017). What calls to ARMs? International evidence on interest rates and the choice of adjustable-rate mortgages. Management Science, 64(5), 2275-2288. https://doi.org/10.1287/mnsc.2016.2629
Bailey, M., Cao, R., Kuchler, T., Stroebel, J. (2017). The economic effects of social networks: evidence from the housing market. Working Paper. https://doi.org/10.2139/ssrn.2753881
Baker, M., Greenwood, R., Wurgler, J. (2009). Catering through nominal share prices. Journal of Finance. 64(6), 2559-2590. https://doi.org/10.1111/j.1540-6261.2009.01511.x
Baker, M., Wurgler, J. (2013). Behavioral corporate finance: an updated survey. Handbook of the Economics of Finance, 2(A), 357-424. https://doi.org/10.1016/B978-0-44-453594-8.00005-7
Balasuriya, J., Gough, O., Vasileva, K. (2014). Do optimists plan for retirement? A behavioural explanation for non-participation in pension schemes. Economics Letters, 125(3), 396-399. https://doi.org/10.1016/j.econlet.2014.10.012
Barber, B. M., Lee, Y.-T., Liu, Y.-J., Odean, T. (2014). The cross-section of speculator skill: evidence from day trading. Journal of Financial Markets, 18, 1-24. https://doi.org/10.1016/j.finmar.2013.05.006
Barber, B. M., Odean, T. (2000). Trading is hazardous to your wealth: the common stock investment performance of individual investors. Journal of Finance, 55(2), 773-806. https://doi.org/10.1111/0022-1082.00226
Barber, B. M., Odean, T. (2013). The behavior of individual investors. Handbook of the Economics of Finance, 2(B), 1533-1570. https://doi.org/10.1016/B978-0-44-459406-8.00022-6
Barber, B. M., Odean, T., Zheng, L. (2005). Out of sight, out of mind: the effects of expenses on mutual fund flows. Journal of Business, 78(6), 2095-2120. https://doi.org/10.1086/497042
Beckmann, E. (2017). How does foreign currency debt relief affect households loan demand? Evidence from the OeNB Euro Survey in CESEE. Focus on European Economic Integration, 1, 8-32.
Beckmann, E., Stix, H. (2015). Foreign currency borrowing and knowledge about exchange rate risk. Journal of Economic Behavior & Organization, 112, 1-16. https://doi.org/10.1016/j.jebo.2014.12.015
Beer, C., Ongena, S., Peter, M. (2010). Borrowing in foreign currency: Austrian households as carry traders. Journal of Banking & Finance, 34(9), 2198-2211. https://doi.org/10.1016/j.jbankfin.2010.02.008
Benartzi, S. (2001). Excessive extrapolation and the allocation of 401 (k) accounts to company stock. Journal of Finance, 56(5), 1747-1764. https://doi.org/10.1111/0022-1082.00388
Bergstresser, D., Beshears, J. L. (2010). Who selected adjustable-rate mortgages? Evidence from the 1989-2007 Surveys of Consumer Finances. Harvard Business School Finance Working Paper, 10-083. https://doi.org/10.2139/ssrn.1573625
Bernheim, B. D., Ray, D., Yeltekin, S. (2015). Poverty and self-control. Econometrica, 83(5), 1877-1911. https://doi.org/10.3982/ECTA11374
Bernile, G., Kumar, A., Sulaeman, J. (2015). Home away from home: geography of information and local investors. Review of Financial Studies, 28(7), 2009-2049. https://doi.org/10.1093/rfs/hhv004
Bostic, R., Chomsisengphet, S., Engel, K. C., McCoy, P. A., Pennington-Cross, A., Wachter, S. (2012). Mortgage product substitution and state anti-predatory lending laws: better loans and better borrowers? Atlantic Economic Journal, 40(3), 273-294. https://doi.org/10.1007/s11293-012-9325-3
Botsch, M. J., Malmendier, U. (2015). Inflation experiences and contract choice. Evidence from residential mortgages. Working Paper. Retrieved from https://www.aeaweb.org/conference/2016/retrieve.php
Briggs, J., Cesarini, D., Lindqvist, E., Ostling, R. (2015). Wealth and stock market participation: estimating the causal effect from Swedish lotteries. Working Paper, 806. Retrieved from https://economicdynamics.org/meetpapers/2015/paper_806.pdf
Brown, M., Grigsby, J., Van der Klaauw, W., Wen, J., Zafar, B. (2016). Financial education and the debt behavior of the young. Review of Financial Studies, 29(9), 2490-2522. https://doi.org/10.1093/rfs/hhw006
Brunetti, M., Torricelli ,C. (2015). Second homes: households' life dream or (wrong) investment? CEIS Working Paper, 351. https://doi.org/10.2139/ssrn.2639739
Brzoza-Brzezina, M., Kolasa, M., Makarski, K. (2017). Monetary and macroprudential policy with foreign currency loans. Journal of Macroeconomics, 54(B), 352-372. https://doi.org/10.1016/j.jmacro.2017.07.004
Bucks, B., Pence, K. (2008). Do borrowers know their mortgage terms? Journal of Urban Economics, 64(2), 218-233. https://doi.org/10.1016/j.jue.2008.07.005
Calvet, L., Haliassos, M., Michaelides, A. (2015). Introduction to JPEF special issue on household finance. Journal of Pension Economics & Finance, 14(4), 329-331. https://doi.org/10.1017/S147474721500030X
Calvet, L. E., Campbell, J. Y., Sodini, P. (2007). Down or out: assessing the welfare costs of household investment mistakes. Journal of Political Economy, 115(5), 707-747. https://doi.org/10.1086/524204
Calvet, L., Gonzalez-Eiras, M., Sodini, P. (2004). Financial innovation, market participation, and asset prices. Journal of Financial and Quantitative Analysis, 39(3), 431-459. https://doi.org/10.1017/S0022109000003975
Campbell, J. Y. (2006). Household finance. Journal of Finance, 61(4), 1553-1604. https://doi.org/10.1111/j.1540-6261.2006.00883.x
Campbell, J. Y., Cocco, J.F. (2003). Household risk management and optimal mortgage choice. Quarterly Journal of Economics, 118(4), 1449-1494. https://doi.org/10.1162/003355303322552847
Campbell, J. Y., Cocco, J. F. (2015). A model of mortgage default. Journal of Finance, 70(4), 1495-1554. https://doi.org/10.1111/jofi.12252
Carter, S. P., Skimmyhorn, W. (2016). Much ado about nothing? New evidence on the effects of payday lending on military members. Review of Economics and Statistics, 99(4), 606-621. https://doi.org/10.1162/rest_a_00647
Chetty, R., Friedman, J. N., Leth-Petersen, S., Nielsen, T. H., Olsen, T. (2014). Active vs. passive decisions and crowd-out in retirement savings accounts: evidence from Denmark. Quarterly Journal of Economics, 129(3), 1141-1219. https://doi.org/10.3386/w18565
Choi, J. J., Laibson, D., Madrian, B. C. (2011). 100 bills on the sidewalk: suboptimal investment in 401 (k) plans. Review of Economics and Statistics, 93(3), 748-763. https://doi.org/10.1162/REST_a_00100
Christelis, D., Jappelli, T., Padula, M. (2010). Cognitive abilities and portfolio choice. European Economic Review, 54(1), 18-38. https://doi.org/10.1016/j.euroecorev.2009.04.001
Cooper, M. J., Dimitrov, O., Rau, P. R. (2001). A Rose.com by any other name. Journal of Finance, 56(6), 2371-2388. https://doi.org/10.1111/0022-1082.00408
Cooper, M. J., Gulen, H., Rau, P. R. (2005). Changing names with style: mutual fund name changes and their effects on fund flows. Journal of Finance, 60(6), 2825-2858. https://doi.org/10.1111/j.1540-6261.2005.00818.x
Cordes, H., Nolte, S., Schneider, J. C. (2017). On the dynamics and drivers of countercyclical risk aversion. Working Paper. https://doi.org/10.2139/ssrn.2918953
Cordray, R. (2013). Protecting Consumers in the Financial Marketplace: Keynote Address, November 2, 2012. University of Chicago Legal Forum, 2013(2). Retrieved from https://chicagounbound.uchicago.edu/uclf/vol2013/iss1/2
Coulibaly, B., Li, G. (2009). Choice of mortgage contracts: evidence from the survey of consumer finances. Real Estate Economics, 37(4), 659-673. https://doi.org/10.1111/j.1540-6229.2009.00259.x
Csajbók, A., Hudecz, A., Tamási, B. (2010). Foreign currency borrowing of housholds in new EU member states. MNB Occasional Papers, 87. Retrieved from https://www.mnb.hu/letoltes/op-87-1.pdf
Damen, S., Buyst, E. (2013). The myopic choice between fixed and adjustable rate mortgages in Flanders. Working Paper. https://doi.org/10.2139/ssrn.2381533
Damen, S., Buyst, E. (2016). Mortgage shoppers: how much do they save? Real Estate Economics. https://doi.org/10.1111/1540-6229.12167
Davis, S. J., Willen, P. (2013). Occupation-level income shocks and asset returns: Their covariance and implications for portfolio choice. Quarterly Journal of Finance, 3(03n04), 1350011. https://doi.org/10.1142/S2010139213500110
Demirgüç-Kunt, A., Klapper, L. F. (2012). Measuring financial inclusion: the global findex database. Policy Research Working Paper, 725. https://doi.org/10.1596/1813-9450-6025
Demyanyk, Y. (2009). Ten myths about subprime mortgages. Federal Reserve Bank of Cleveland Economic Commentary. Retrieved from https://goo.gl/33a1i4
Demyanyk, Y., Van Hemert O. (2011). Understanding the subprime mortgage crisis. Review of Financial Studies, 24(6), 1848-1880. https://doi.org/10.1093/rfs/hhp033
Doskeland, T. M., Hvide, H. K. (2011). Do individual investors have asymmetric information based on work experience? Journal of Finance, Vol. 66, No. 3, pp. 1011-1041. https://doi.org/10.1111/j.1540-6261.2011.01658.x
Eisenstein E. M., Hoch S. J. (2007). Intuitive compounding: framing, temporal perspective, and expertise. Working Paper. Retrieved from https://goo.gl/A183oi
FCIC, Financial Crisis Inquiry Commission, (2011). The financial crisis inquiry report. Final report of the National Commission on the Causes of the Financial and Economic Crisis in the United States. New York: Financial Crisis Inquiry Commission.
Fernandes, D., Lynch, Jr J. G., Netemeyer, R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), 1861-1883. https://doi.org/10.1287/mnsc.2013.1849
Finkelstein, B. (2010). Have consumers learned from mortgage mistakes? Mortgage Servicing News, 14(7), 22-32.
Foerster, S., Linnainmaa, J. T., Melzer, B. T., Previtero, A. (2017). Retail financial advice: does one size fit all? Journal of Finance, 72(4), 1441-1482. https://doi.org/10.1111/jofi.12514
Fornero, E., Monticone, C., Trucchi, S. (2011). The effect of financial literacy on mortgage choices. Netspar Discussion Paper, 09/2011-085. https://doi.org/10.2139/ssrn.1950040
Gathergood, J. (2012). Self-control, financial literacy and consumer over-indebtedness. Journal of Economic Psychology, 33(3), 590-602. https://doi.org/10.1016/j.joep.2011.11.006
Gathergood, J., Mahoney, N., Stewart, N., Weber, J. (2017). How do individuals repay their debt? The balance-matching heuristic. Working Paper, 24161. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w24161
Gathergood, J., Weber, J. (2017). Financial literacy, present bias and alternative mortgage products. Journal of Banking & Finance, 78, 58-83. https://doi.org/10.1016/j.jbankfin.2017.01.022
Gennaioli, N., Shleifer, A., Vishny, R. (2015). Money doctors. Journal of Finance, 70(1), 91-114. https://doi.org/10.1111/jofi.12188
Gerardi, K., Goette, L., Meier, S. (2013). Numerical ability predicts mortgage default. Proceedings of the National Academy of Sciences, 110(28), 11267-11271. https://doi.org/10.1073/pnas.1220568110
Giannetti, M., Wang, T. Y. (2016). Corporate scandals and household stock market participation. Journal of Finance, 71(6), 2591-2636. https://doi.org/10.1111/jofi.12399
Giné, X., Martinez Cuellar, C., Mazer, R. K. (2014). Financial (dis-) information: evidence from an audit study in Mexico. World Bank Policy Research Working Paper, 6902. https://doi.org/10.1596/1813-9450-6902
Glaser, M., Iliewa, Z., Weber, M. (2016). Thinking about prices versus thinking about returns in financial markets. https://doi.org/10.2139/ssrn.2750064
Goda, G. S., Levy, M., Manchester, C. F., Sojourner, A., Tasoff, J. (2015). The role of time preferences and exponential-growth bias in retirement savings. Working Paper, 21482. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w21482
Goetzmann, W. N., Kumar, A. (2008). Equity portfolio diversification. Review of Finance, 12(3), 433-463. https://doi.org/10.1093/rof/rfn005
Grinblatt, M., Keloharju, M. (2000). The investment behavior and performance of various investor types: a study of Finland's unique data set. Journal of Financial Economics, 55(1), 43-67. https://doi.org/10.1016/S0304-405X(99)00044-6
Grinblatt, M., Keloharju, M. (2009). Sensation seeking, overconfidence, and trading activity. Journal of Finance, 64(2), 549-578. https://doi.org/10.1111/j.1540-6261.2009.01443.x
Grosshans, D., Zeisberger, S. (2017). All's well that ends well? On the importance of how returns are achieved. Journal of Banking & Finance, 87, 397-410. https://doi.org/10.1016/j.jbankfin.2017.09.021
Guiso, L., Sapienza, P., Zingales, L. (2008). Trusting the stock market. Journal of Finance, 63(6), 2557-2600. https://doi.org/10.1111/j.1540-6261.2008.01408.x
Guiso, L., Sodini, P. (2013). Household finance: an emerging field. Handbook of the Economics of Finance, 2(B), 1397-1532. https://doi.org/10.1016/B978-0-44-459406-8.00021-4
Gurun, U. G., Matvos, G., Seru, A. (2016). Advertising expensive mortgages. Journal of Finance, 71(5), 2371-2416. https://doi.org/10.1111/jofi.12423
Gurun, U. G., Stoffman, N., Yonker, S. E. (2015). Trust busting: the effect of fraud on investor behavior. Kelley School of Business Research Paper, 15-70. https://doi.org/10.2139/ssrn.2664307
Haliassos, M., Bertaut, C. C. (1995). Why do so few hold stocks? Economic Journal, 105(432), 1110-1129. https://doi.org/10.2307/2235407
Harris, L. E., Hartzmark, S. M., Solomon, D. H. (2015). Juicing the dividend yield: mutual funds and the demand for dividends. Journal of Financial Economics, 116(3), 433-451. https://doi.org/10.1016/j.jfineco.2015.04.001
Heidhues, P., Koszegi, B. (2010). Exploiting naivete about self-control in the credit market. American Economic Review, 100(5), 2279-2303. https://doi.org/10.1257/aer.100.5.2279
Hilgert, M. A., Hogarth, J. M., Beverly, S. G. (2003). Household financial management: the connection between knowledge and behavior. Federal Reserve Bulletin, 89, 309-322. Retrieved from https://www.federalreserve.gov/pubs/bulletin/2003/0703lead.pdf
Huberman, G. (2001). Familiarity breeds investment. Review of Financial Studies, 14(3), 659-680. https://doi.org/10.1093/rfs/14.3.659
Hullgren, M., Söderberg, I.-L. (2016). Borrower characteristics and mortgage rate choice in Sweden. International Journal of Bank Marketing, 34(5), 649-669. https://doi.org/10.1108/IJBM-07-2014-0099
Hurd, M., Van Rooij, M., Winter, J. (2011). Stock market expectations of Dutch households. Journal of Applied Econometrics, 26(3), 416-436. https://doi.org/10.1002/jae.1242
Hyytinen, A., Putkuri, H. (2012). Household optimism and borrowing. Research Discussion Paper, 21/2012. Bank of Finland. https://doi.org/10.2139/ssrn.2101025
Illiashenko, P. (2017). Behavioral finance: history and foundations. Visnyk of the National Bank of Ukraine, 239, 28-54. https://doi.org/10.26531/vnbu2017.239.028
Ize, A., Yeyati, E. L. (2003). Financial dollarization. Journal of International Economics, 59(2), 323-347. https://doi.org/10.1016/S0022-1996(02)00017-X
Jelveh, Z., Kogut, B., Naidu, S. (2015). Political language in economics. Columbia Business School Research Paper, 14-57. https://doi.org/10.2139/ssrn.2535453
Johnson, K. W., Li, G. (2014). Are adjustable-rate mortgage borrowers borrowing constrained? Real Estate Economics, 42(2), 457-471. https://doi.org/10.1111/1540-6229.12033
Karlan, D., McConnell, M., Mullainathan, S., Zinman, J. (2016). Getting to the top of mind: how reminders increase saving. Management Science, 62(12), 3393-3411. https://doi.org/10.1287/mnsc.2015.2296
Karlan, D., Ratan, A. L., Zinman, J. (2014). Savings by and for the poor: a research review and agenda. Review of Income and Wealth, 60(1), 36-78. https://doi.org/10.1111/roiw.12101
Karlan, D., Zinman, J. (2010). Expanding credit access: using randomized supply decisions to estimate the impacts. Review of Financial Studies, 23(1), 433-464. https://doi.org/10.1093/rfs/hhp092
Kast, F., Meier, S., Pomeranz, D. (2012). Under-savers anonymous: evidence on self-help groups and peer pressure as a savings commitment device. Working Paper, 18417. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w18417
Kaustia, M., Knüpfer, S. (2008). Do investors overweight personal experience? Evidence from IPO subscriptions. Journal of Finance, 63(6), 2679-2702. https://doi.org/10.1111/j.1540-6261.2008.01411.x
Kaustia, M., Conlin, A., Luotonen, N. (2016). What drives the heterogeneity in portfolio choice? The role of institutional, traditional, and behavioral factors. Working Paper. https://doi.org/10.2139/ssrn.2845963
Kaustia, M., Torstila, S. (2011). Stock market aversion? Political preferences and stock market participation. Journal of Financial Economics, 100(1), 98-112. https://doi.org/10.1016/j.jfineco.2010.10.017
Keys, B. J., Pope, D. G., Pope, J. C. (2016). Failure to refinance. Journal of Financial Economics, 122(3), 482-499. https://doi.org/10.1016/j.jfineco.2016.01.031
Keys, B. J., Wang, J. (2016). Minimum payments and debt paydown in consumer credit cards. Working Paper, 22742. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w22742
Kézdi, G., Willis, R. J. (2009). Stock market expectations and portfolio choice of American households. Unpublished manuscript. Retrieved from https://goo.gl/MypABg
Klapper, L., Lusardi, A., Van Oudheusden, P. (2015). Financial literacy around the world. Standard & Poor's Ratings Services Global Financial Literacy Survey. Retrieved from https://goo.gl/yJsZE5
Koijen, R. S., Van Hemert, O., Van Nieuwerburgh, S. (2009). Mortgage timing. Journal of Financial Economics, 93(2), 292-324. https://doi.org/10.1016/j.jfineco.2008.09.005
Korniotis, G. M., Kumar, A. (2013). Do portfolio distortions reflect superior information or psychological biases? Journal of Financial and Quantitative Analysis, 48(1), 1-45. https://doi.org/10.1017/s0022109012000610
Kuchler, T. (2015). Sticking to your plan: empirical evidence on the role of present bias for credit card paydown. Working Paper, 24881. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w24881
Larrimore, J., Arthur-Bentil, M., Dodini, S., Thomas, L. (2016). report on the economic well-being of U.S. Households in 2015. Retrieved from https://www.federalreserve.gov/2015-report-economic-well-being-us-households-201605.pdf
Lee, Y.-T., Liu, Y.-J., Zhu, N. (2008). The costs of owning employer stocks: lessons from Taiwan. Journal of Financial and Quantitative Analysis, 43(3), 717-740. https://doi.org/10.1017/s0022109000004269
Levy, M., Tasoff, J. (2016). Exponential-growth bias and lifecycle consumption. Journal of the European Economic Association, 14(3), 545-583. https://doi.org/10.1111/jeea.12149
Lou, D. (2014). Attracting investor attention through advertising. Review of Financial Studies, 27(6), 1797-1829. https://doi.org/10.1093/rfs/hhu019
Lusardi, A., Michaud, P.-C., Mitchell, O. S. (2017a). Optimal financial knowledge and wealth inequality. Journal of Political Economy, 125(2), 431-477. https://doi.org/10.1086/690950
Lusardi, A., Mitchell, O. S. (2014). The economic importance of financial literacy: theory and evidence. Journal of Economic Literature, 52(1), 5-44. https://doi.org/10.1257/jel.52.1.5
Lusardi, A., Mitchell, O. S., Oggero, N. (2017b). Debt and financial vulnerability on the verge of retirement. Working Paper, 23664. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w23664
Lusardi, A., Tufano, P. (2009). Debt literacy, financial experiences, and overindebtedness. Working Paper, 14808. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w14808
Malmendier, U., Nagel, S. (2011). Depression babies: do macroeconomic experiences affect risk taking? Quarterly Journal of Economics, 126(1), 373-416. https://doi.org/10.1093/qje/qjq004
Massa, M., Simonov, A. (2006). Hedging, familiarity and portfolio choice. Review of Financial Studies, 19(2), 633-685. https://doi.org/10.1093/rfs/hhj013
Mayer, C., Pence, K., Sherlund, S. M. (2009). The rise in mortgage defaults. Journal of Economic Perspectives, 23(1), 27-50. https://doi.org/10.1257/jep.23.1.27
McKenzie, C. R., Liersch, M. J. (2011). Misunderstanding savings growth: implications for retirement savings behavior. Journal of Marketing Research, 48, S1-S13. https://doi.org/10.1509%2Fjmkr.48.SPL.S1
Meier, S., Sprenger, C. (2010). Present-biased preferences and credit card borrowing. American Economic Journal: Applied Economics, 2(1), 193-210. https://doi.org/10.1257/app.2.1.193
Moore, D. L. (2003). Survey of financial literacy in Washington State: Knowledge, behavior, attitudes, and experiences. Technical report.
Munnell, A. H., Webb, A., Golub-Sass, F. (2012). The national retirement risk index: an update. Center for Retirement Research at Boston College, 12-20, 1-8. Retrieved from https://crr.bc.edu/wp-content/uploads/2012/11/IB_12-20-508.pdf
Nolte, S., Schneider, J. C. (2016). How price path characteristics shape investment behavior. Working Paper. https://doi.org/10.2139/ssrn.2883382
Paiella, M., Pozzolo, A. F. (2007). Choosing between fixed-and adjustable-rate mortgages. In Household Credit Usage: Personal Debt and Mortgages, S. Agarwal, and B. W. Ambrose, eds., pp. 219-236. New York: Palgrave Macmillan. https://doi.org/10.1057/9780230608917_13
Pellényi, G., Bilek, P. (2009). Foreign currency borrowing: the case of Hungary. FINESS Working Paper. Retrieved from https://www.econstor.eu/handle/10419/119503
Perry, V. G., Morris, M. D. (2005). Who is in control? The role of self-perception, knowledge, and income in explaining consumer financial Behavior. Journal of Consumer Affairs, 39(2), 299-313. https://doi.org/10.1111/j.1745-6606.2005.00016.x
Polkovnichenko, V. (2005). Household portfolio diversification: a case for rank-dependent preferences. Review of Financial Studies, 18(4), 1467-1502. https://doi.org/10.1093/rfs/hhi033
Ponce, A., Seira, E., Zamarripa, G. (2017). Borrowing on the wrong credit card? Evidence from Mexico. The American Economic Review, 107(4), 1335-1361. https://doi.org/10.1257/aer.20120273
Puri, M., Robinson, D. T. (2007). Optimism and economic choice. Journal of Financial Economics, 86(1), 71-99. https://doi.org/10.1016/j.jfineco.2006.09.003
Rhee, N., Boivie, I. (2015). The continuing retirement savings crisis. Working Paper. https://doi.org/10.2139/ssrn.2785723
Roussanov, N. (2010). Diversification and its discontents: idiosyncratic and entrepreneurial risk in the quest for social status. Journal of Finance, 65(5), 1755-1788. https://doi.org/10.1111/j.1540-6261.2010.01593.x
Ru, H., Schoar, A. (2016). Do credit card companies screen for behavioral biases? Working Paper, 22360. Cambridge: National Bureau of Economic Research. https://doi.org/10.3386/w22360
Seasholes, M. S., Zhu, N. (2010). Individual investors and local bias. Journal of Finance, 65(5), 1987-2010. https://doi.org/10.1111/j.1540-6261.2010.01600.x
Soll, J. B., Keeney, R. L., Larrick, R. P. (2013). Consumer misunderstanding of credit card use, payments, and debt: causes and solutions. Journal of Public Policy & Marketing, 32(1), 66-81. https://doi.org/10.1509/jppm.11.061
Stango, V., Zinman, J. (2009a). Exponential growth bias and household finance. Journal of Finance, 64(6), 2807-2849. https://doi.org/10.1111/j.1540-6261.2009.01518.x
Stango, V., Zinman, J. (2009b). What do consumers really pay on their checking and credit card accounts? Explicit, implicit, and avoidable costs. American Economic Review, 99(2), 424-429. https://doi.org/10.1257/aer.99.2.424
Stango, V., Zinman, J. (2016). Borrowing high versus borrowing higher: price dispersion and shopping behavior in the US credit card market. Review of Financial Studies, 29(4), 979-1006. https://doi.org/10.1093/rfs/hhv072
Tufano, P. (2009). Consumer finance. Annual Review of Financial Economics, 1(1), 227-247. https://doi.org/10.1146/annurev.financial.050808.114457
Valletta, M., Zocchi, P. (2009). I risparmiatori e le banche. XVI Rapporto sul risparmio e suirisparmiatori in Italia BNL/Centro Einaudi. Unpublished manuscript.
Van Horne, J. C., Blume, M. E., Friend, I. (1975). The asset structure of individual portfolios and some implications for utility functions. Journal of Finance, 30(2), 585-603. https://doi.org/10.1111/j.1540-6261.1975.tb01833.x
Van Nieuwerburgh, S., Veldkamp, L. (2010). Information acquisition and underdiversification. Review of Economic Studies, 77(2), 779-805. https://doi.org/10.1111/j.1467-937X.2009.00583.x
Van Rooij, M., Lusardi, A., Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472. https://doi.org/10.1016/j.jfineco.2011.03.006
Vieira, K. M., de Oliveira, M. O. R., Kunkel, F. I. R. (2016). The credit card use and debt: is there a trade-off between compulsive buying and ill-being perception? Journal of Behavioral and Experimental Finance, 10(C), 75-87. https://doi.org/10.1016/j.jbef.2016.03.001
Vissing-Jorgensen A. (2003). Perspectives on behavioral finance: does "irrationality" disappear with wealth? Evidence from Expectations and Actions. NBER Macroeconomics Annual, 18, 139-194. https://doi.org/10.1086/ma.18.3585252
Weber, J., Meyer, S., Loos, B., Hackethal, A. (2014). Which investment behaviors really matter for individual investors. Working Paper. https://doi.org/10.2139/ssrn.2381435
WEF, World Economic Forum, (2017). We'll Live to 100. How can we afford it? World Economic Forum White Paper. Retrieved from https://www.weforum.org/whitepapers/we-ll-live-to-100-how-can-weafford-it
Zinman, J. (2010). Restricting consumer credit access: household survey evidence on effects around the Oregon rate cap. Journal of banking & Finance, 34(3), 546-556. https://doi.org/10.1016/j.jbankfin.2009.08.024
Zinman, J. (2014). Consumer credit: too much or too little (or just right)? Journal of Legal Studies, 43(S2), S209-S237. https://doi.org/10.1086/676133
Zinman, J. (2015). Household debt: facts, puzzles, theories, and policies. Annual Review of Economics, 7(1), 251-276. https://doi.org/10.1146/annurev-economics-080614-115640
Zinman, J., Zitzewitz, E. (2016). Wintertime for deceptive advertising? American Economic Journal: Applied Economics, 8(1), 177-192. https://doi.org/10.1257/app.20130346
Zocchi, P. (2013). Why do Italian households prefer adjustable rate mortgages? Journal of European Real Este Research, 6(1), 90-110. https://doi.org/10.1108/17539261311312997