Consumer Finance

Our Consumer Finance Institute researches how people earn, spend, save, and invest, as well as how credit markets and payment systems affect the economy. Our goal is to foster a healthy consumer sector, a stable financial system, and a resilient regional and national economy.

A man in a blue button-down shirt and glasses holds a bill in his hand while sitting at the kitchen table.

Consumer Credit

Working Paper

Consumer Credit with Over-Optimistic Borrowers

WP 21-42 – Do cognitive biases call for regulation to limit the use of credit? We incorporate over-optimistic and rational borrowers into an incomplete markets model with consumer bankruptcy.

How Consumers Made Ends Meet During the COVID-19 Pandemic

To gauge how the unprecedented economic downturn and related surge in unemployment affected individual households as a result of the COVID-19 pandemic, this latest research brief focused on the strategies respondents used to help make ends meet based on data from the Consumer Finance Institute’s COVID-19 Survey of Consumers.

Consumer Credit

Working Paper

Financial Consequences of Severe Identity Theft in the U.S.

WP 21-41 – We examine how a negative shock from severe identity theft affects consumer credit market behavior in the United States.

Man putting a credit card in his jacket's breast pocket

Payment Systems

Working Paper

Dynamic Pricing of Credit Cards and the Effects of Regulation

WP 21-38 – We construct a two-period model of revolving credit with asymmetric information and adverse selection.

Consumer Credit

Working Paper

Reducing Strategic Default in a Financial Crisis

WP 21-36 – We document that increasing penalties for default reduces strategic default in financial crises by exploiting the 2009 changes to Canadian consumer insolvency regulations.

Examining Resolution of Mortgage Forbearances and Delinquencies – November 2021

The Risk Assessment, Data Analysis, and Research (RADAR) Group has created a monthly report examining mortgage forbearances and delinquencies.