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This paper examines whether repeated payday loan use, commonly known as the debt trap, harms borrowers' financial wellbeing. Using Open Banking data from 1,815 UK borrowers observed between 2017 and 2018, we model borrowing intensity using…

Applications · Statistics 2026-05-08 Victor Medina-Olivares , Raffaella Calabrese

We introduce the resilience rate as a measure of financial resilience. It captures the expected rate at which a dynamic risk measure recovers, i.e., bounces back, when the risk-acceptance set is breached. We develop the corresponding…

Mathematical Finance · Quantitative Finance 2026-01-26 Roger J. A. Laeven , Matteo Ferrari , Emanuela Rosazza Gianin , Marco Zullino

We develop and evaluate a family of discrete-time logit-link (LLink) models (including fixed-effects and frailty extensions) to capture latent heterogeneity in repayment behaviour and quantify the effects of socio-temporal factors in…

Risk Management · Quantitative Finance 2025-08-12 Cedric H. A. Koffi , Viani Biatat Djeundje , Olivier Menoukeu Pamen

Motivated by research on gender identity norms and the distribution of the woman's share in a couple's total labor income, we consider functional additive regression models for probability density functions as responses with scalar…

Methodology · Statistics 2024-06-18 Eva-Maria Maier , Almond Stöcker , Bernd Fitzenberger , Sonja Greven

I propose an approach to quantify attention to inflation in the data and show that the decrease in the volatility and persistence of U.S. inflation after the Great Inflation period was accompanied by a decline in the public's attention to…

General Economics · Economics 2023-10-24 Oliver Pfäuti

We briefly review statistical models for the probability distribution of money developed in the econophysics literature since the late 1990s. In these models, economic transactions are modeled as random transfers of money between the agents…

Statistical Finance · Quantitative Finance 2011-03-14 Victor M. Yakovenko

Empirical studies on food expenditure are largely based on cross-section data and for a few studies based on longitudinal (or panel) data the focus has been on the conditional mean. While the former, by construction, cannot model the…

General Economics · Economics 2020-10-07 Arjun Gupta , Soudeh Mirghasemi , Mohammad Arshad Rahman

An average instantaneous cross-correlation function is introduced to quantify the interaction of the financial market of a specific time. Based on the daily data of the American and Chinese stock markets, memory effect of the average…

Statistical Finance · Quantitative Finance 2015-05-18 Tian Qiu , Guang Chen , Li-Xin Zhong , Xiao-Wei Lei

By integrating survival analysis, machine learning algorithms, and economic interpretation, this research examines the temporal dynamics associated with attaining a 5 percent rise in purchasing power parity-adjusted GDP per capita over a…

General Economics · Economics 2024-04-09 Diego Vallarino

This paper attempts to find a relationship between agents' risk aversion and inequality of incomes. Specifically, a model is proposed for the evolution in time of surplus/deficit distribution, and the long-time distributions are…

Economics · Quantitative Finance 2016-05-12 Eleonora Perversi , Eugenio Regazzini

In the post-epidemic era, consumption recovery has obvious time and space transmission laws, and there are different valuation criteria for consumption segments. Using the A-share data of the consumption recovery stage from January to April…

General Economics · Economics 2024-01-26 Wenbo Lyu

The overconsumption of consumers under today's increasingly scarce natural resources has overwhelmed the textile industry in middle-income countries, such as Romania. It is becoming more and more essential to encourage sustainable clothing…

General Economics · Economics 2024-04-22 Anastasia Cosma

Extensive research shows that consumers are generally averse to price discrimination. However, instruments of differential pricing can benefit consumer surplus and alleviate inequity through targeted price discounts. This paper examines how…

General Economics · Economics 2024-04-05 Alexander Erlei , Mattheus Brenig , Nils Engelbrecht

The role of specific cognitive processes in deviations from constant discounting in intertemporal choice is not well understood. We evaluated decreased impatience in intertemporal choice tasks independent of discounting rate and…

Theoretical Economics · Economics 2020-12-22 Camila S. Agostino Peter M. E. Claessens , Fuat Balci , Yossi Zana

Online learning has traditionally focused on the expected rewards. In this paper, a risk-averse online learning problem under the performance measure of the mean-variance of the rewards is studied. Both the bandit and full information…

Machine Learning · Statistics 2019-03-15 Sattar Vakili , Alexis Boukouvalas , Qing Zhao

Student loans occupy a significant portion of the federal budget, as well as, the largest financial burden in terms of debt for graduates. This paper explores data-driven approaches towards understanding the repayment of such loans. Using…

Applications · Statistics 2018-05-07 Bin Luo , Qi Zhang , Somya D. Mohanty

We analyze the household savings problem in a general setting where returns on assets, non-financial income and impatience are all state dependent and fluctuate over time. All three processes can be serially correlated and mutually…

Theoretical Economics · Economics 2020-08-07 Qingyin Ma , John Stachurski , Alexis Akira Toda

We study the problem of learning shared structure \emph{across} a sequence of dynamic pricing experiments for related products. We consider a practical formulation where the unknown demand parameters for each product come from an unknown…

Machine Learning · Computer Science 2021-01-07 Hamsa Bastani , David Simchi-Levi , Ruihao Zhu

Understanding consumer behavior is an important task, not only for developing marketing strategies but also for the management of economic policies. Detecting consumption patterns, however, is a high-dimensional problem in which various…

Machine Learning · Computer Science 2020-08-25 Akira Matsui , Teruyoshi Kobayashi , Daisuke Moriwaki , Emilio Ferrara

Portfolio diversification is a cornerstone of modern finance, while risk aversion is central to decision theory; both concepts are long-standing and foundational. We investigate their connections by studying how different forms of…

Theoretical Economics · Economics 2026-03-26 Xiangxin He , Fangda Liu , Ruodu Wang