Document Type
Working Paper
Publication Date
2006
Abstract
This paper analyzes the effects of credit card use on broader economic indicators, specifically consumer credit, and consumer bankruptcy filings. Using aggregate nation-level data from Australia, Canada, Japan, the United Kingdom, and the United States, I find that credit card spending, lagged by 1-2 years, has a strong positive effect on consumer credit. Finally, I find a strong relation between credit card debt, lagged by 1-2 years, and bankruptcy, and a weaker relation between consumer credit, lagged by 1-2 years, and bankruptcy. The relations are robust across a variety of different lags and models that account for problems of multicollinearity and auto-correlation in the time series and include variables to control for the effects of economic cycles on bankruptcy and dummy variables to isolate nation-specific effects
Disciplines
Banking and Finance Law | Bankruptcy Law | Law | Law and Economics
Recommended Citation
Ronald J. Mann,
Credit Cards, Consumer Credit, and Bankruptcy,
U of Texas Law & Economics Research Paper No. 44
(2006).
Available at:
https://scholarship.law.columbia.edu/faculty_scholarship/1358