Moral Incentives in Credit Card Debt Repayment: Evidence from a Field Experiment
We study the role of morality in debt repayment, using an experiment with the credit card customers of a large Islamic bank in Indonesia. In our main treatment, clients receive a text message stating that “non-repayment of debts by someone who is able to repay is an injustice.” This moral appeal dec...
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| Veröffentlicht in: | The Journal of political economy 2019-08, Vol.127 (4), p.1641-1683 |
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| container_end_page | 1683 |
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| container_issue | 4 |
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| container_title | The Journal of political economy |
| container_volume | 127 |
| creator | Bursztyn, Leonardo Fiorin, Stefano Gottlieb, Daniel Kanz, Martin |
| description | We study the role of morality in debt repayment, using an experiment with the credit card customers of a large Islamic bank in Indonesia. In our main treatment, clients receive a text message stating that “non-repayment of debts by someone who is able to repay is an injustice.” This moral appeal decreases delinquency by 4.4 percentage points from a baseline of 66 percent and reduces default among customers with the highest ex ante credit risk. Additional treatments help benchmark the effects against direct financial incentives and rule out competing explanations, such as reminder effects, priming religion, and provision of new information. |
| doi_str_mv | 10.1086/701605 |
| format | Article |
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Additional treatments help benchmark the effects against direct financial incentives and rule out competing explanations, such as reminder effects, priming religion, and provision of new information.</description><subject>Credit risk</subject><subject>Customers</subject><subject>Debt</subject><subject>Economic theory</subject><subject>Financial incentives</subject><subject>Islam</subject><subject>Morality</subject><subject>Political economy</subject><subject>Priming</subject><subject>Religion</subject><issn>0022-3808</issn><issn>1537-534X</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2019</creationdate><recordtype>article</recordtype><recordid>eNpF0E1Lw0AQBuBFFKxVf8OC4i06-914k9iqUFFEwVuYJBNNaZO4mxb7701JwbnM5eGd4WXsXMC1gIm9cSAsmAM2Eka5yCj9echGAFJGagKTY3YSwgL6EaBG7PW58bjkT3VOdVdtKPCq5omnoup4gr7g95R1_I1a3K56ccunm6qgXvPSNyuOfFbRsuDT35Z8tROn7KjEZaCz_R6zj9n0PXmM5i8PT8ndPMqV1l2kdYkyK3OhyjgmMM7FWqAqnCFptNWgrBGAAssM0BhSyjqNlEnSgJiTGrOLIbf1zc-aQpcumrWv-5OplM6BtBbiXl0NKvdNCJ7KtO3fRL9NBaS7ttKhrR5eDnCdf1c5fjWtpxD-M_fsD5cPZsY</recordid><startdate>20190801</startdate><enddate>20190801</enddate><creator>Bursztyn, Leonardo</creator><creator>Fiorin, Stefano</creator><creator>Gottlieb, Daniel</creator><creator>Kanz, Martin</creator><general>The University of Chicago Press</general><general>University of Chicago, acting through its Press</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20190801</creationdate><title>Moral Incentives in Credit Card Debt Repayment: Evidence from a Field Experiment</title><author>Bursztyn, Leonardo ; Fiorin, Stefano ; Gottlieb, Daniel ; Kanz, Martin</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c344t-44fa2bfc13f99e0577941a3d75e25464036510a1afb0a55e33674aeb2e40aace3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2019</creationdate><topic>Credit risk</topic><topic>Customers</topic><topic>Debt</topic><topic>Economic theory</topic><topic>Financial incentives</topic><topic>Islam</topic><topic>Morality</topic><topic>Political economy</topic><topic>Priming</topic><topic>Religion</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Bursztyn, Leonardo</creatorcontrib><creatorcontrib>Fiorin, Stefano</creatorcontrib><creatorcontrib>Gottlieb, Daniel</creatorcontrib><creatorcontrib>Kanz, Martin</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>The Journal of political economy</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Bursztyn, Leonardo</au><au>Fiorin, Stefano</au><au>Gottlieb, Daniel</au><au>Kanz, Martin</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Moral Incentives in Credit Card Debt Repayment: Evidence from a Field Experiment</atitle><jtitle>The Journal of political economy</jtitle><date>2019-08-01</date><risdate>2019</risdate><volume>127</volume><issue>4</issue><spage>1641</spage><epage>1683</epage><pages>1641-1683</pages><issn>0022-3808</issn><eissn>1537-534X</eissn><abstract>We study the role of morality in debt repayment, using an experiment with the credit card customers of a large Islamic bank in Indonesia. 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| ispartof | The Journal of political economy, 2019-08, Vol.127 (4), p.1641-1683 |
| issn | 0022-3808 1537-534X |
| language | eng |
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| source | EBSCOhost Business Source Complete; University of Chicago Press Journals (Full run) |
| subjects | Credit risk Customers Debt Economic theory Financial incentives Islam Morality Political economy Priming Religion |
| title | Moral Incentives in Credit Card Debt Repayment: Evidence from a Field Experiment |
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