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Author: Sumit Agarwal
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 73
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Book Description
We study credit card rewards as an ideal laboratory to quantify redistribution between consumers in retail financial markets. Comparing cards with and without rewards, we find that, regardless of income, sophisticated individuals profit from reward credit cards at the expense of naive consumers. To probe the underlying mechanisms, we exploit bank-initiated account limit increases at the card level and show that reward cards induce more spending, leaving naive consumers with higher unpaid balances. Naive consumers also follow a sub-optimal balance-matching heuristic when repaying their credit cards, incurring higher costs. Banks incentivize the use of reward cards by offering lower interest rates than on comparable cards without rewards. We estimate an aggregate annual redistribution of $15 billion from less to more educated, poorer to richer, and high to low minority areas, widening existing disparities.
Author: Sumit Agarwal
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 73
Get Book
Book Description
We study credit card rewards as an ideal laboratory to quantify redistribution between consumers in retail financial markets. Comparing cards with and without rewards, we find that, regardless of income, sophisticated individuals profit from reward credit cards at the expense of naive consumers. To probe the underlying mechanisms, we exploit bank-initiated account limit increases at the card level and show that reward cards induce more spending, leaving naive consumers with higher unpaid balances. Naive consumers also follow a sub-optimal balance-matching heuristic when repaying their credit cards, incurring higher costs. Banks incentivize the use of reward cards by offering lower interest rates than on comparable cards without rewards. We estimate an aggregate annual redistribution of $15 billion from less to more educated, poorer to richer, and high to low minority areas, widening existing disparities.
Author: Sumit Agarwal
Publisher:
ISBN:
Category : Consumer credit
Languages : en
Pages : 0
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Book Description
Author: Scott Schuh
Publisher: DIANE Publishing
ISBN: 1437937012
Category : Business & Economics
Languages : en
Pages : 57
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Book Description
Merchant fees and reward programs generate an implicit monetary transfer to credit card users from non-card (or ¿cash¿) users because merchants generally do not set differential prices for card users to recoup the costs of fees and rewards. On average, each cash-using household pays $151 to card-using households and each card-using household receives $1,482 from cash users every year. The payment instrument transfer also induces a regressive transfer from low-income to high-income households in general. The authors build and calibrate a model of consumer payment choice to compute the effects of merchant fees and card rewards on consumer welfare. Reducing merchant fees and card rewards would likely increase consumer welfare.
Author: George Kamel
Publisher: Ramsey Press
ISBN: 1942121792
Category : Business & Economics
Languages : en
Pages : 259
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Book Description
America has become the land of the free and the home of the broke. Household debt is at an all-time high, and every day people—just like you—are feeling more cynical and hopeless about their financial futures. It’s time to stop believing countless lies from a system designed to take your money—lies like student loans are the golden ticket to a good-paying job, car payments are just part of life, and that you need to have a credit card. Ramsey Personality and personal finance expert George Kamel shares his story of going from a negative net worth to a millionaire in under 10 years by following Dave Ramsey’s Baby Steps. George’s delivery, highlighted by his snarky sense of humor, will keep you laughing and engaged from cover to cover (no put-you-to-sleep financial advice here). Through a millennial point of view, George exposes the toxic money system designed to keep you average (and broke) and offers solutions to help you break free from: Credit cards and credit scores Student and car loans Mortgage mistakes Investing traps Marketing and consumerism No matter where you’re starting from, you’ll learn that you have the power to buck the toxic money system and build wealth if you follow the same principles George used to become a millionaire.
Author: Christopher Decker
Publisher: Cambridge University Press
ISBN: 1009092553
Category : Business & Economics
Languages : en
Pages : 780
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Book Description
Economic regulation affects us all, shaping how we access essential services such as water, energy and transport, as well as how we communicate with one another in the digital world. Modern Economic Regulation describes the core insights of economic theory on which regulatory policies are based and connects this with evidence of how regulation is applied. It focuses on fundamental questions such as: why are certain industries regulated? What principles can inform regulation? How is regulation implemented? Which regulatory policies have been more, or less, effective in practice? All chapters in this second edition are fully updated to reflect the latest research and evidence, while five new chapters cover behavioural economics and the regulation of rail, aviation, payment systems and digital platforms. Each chapter contains discussion questions and topical case studies, and online materials include over 60 applied exercises that explore real-life regulatory problems from around the world.
Author: Brian Graf
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781484354841
Category : Business & Economics
Languages : en
Pages : 509
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Book Description
The Consumer Price Index Manual: Concepts and Methods contains comprehensive information and explanations on compiling a consumer price index (CPI). The Manual provides an overview of the methods and practices national statistical offices (NSOs) should consider when making decisions on how to deal with the various problems in the compilation of a CPI. The chapters cover many topics. They elaborate on the different practices currently in use, propose alternatives whenever possible, and discuss the advantages and disadvantages of each alternative. The primary purpose of the Manual is to assist countries in producing CPIs that reflect internationally recommended methods and practices.
Author: Laurent Ferrara
Publisher: Springer
ISBN: 3319790757
Category : Business & Economics
Languages : en
Pages : 298
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Book Description
This book collects selected articles addressing several currently debated issues in the field of international macroeconomics. They focus on the role of the central banks in the debate on how to come to terms with the long-term decline in productivity growth, insufficient aggregate demand, high economic uncertainty and growing inequalities following the global financial crisis. Central banks are of considerable importance in this debate since understanding the sluggishness of the recovery process as well as its implications for the natural interest rate are key to assessing output gaps and the monetary policy stance. The authors argue that a more dynamic domestic and external aggregate demand helps to raise the inflation rate, easing the constraint deriving from the zero lower bound and allowing monetary policy to depart from its current ultra-accommodative position. Beyond macroeconomic factors, the book also discusses a supportive financial environment as a precondition for the rebound of global economic activity, stressing that understanding capital flows is a prerequisite for economic-policy decisions.
Author: Jacob S. Hacker
Publisher: Simon and Schuster
ISBN: 1416588701
Category : Political Science
Languages : en
Pages : 368
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Book Description
Analyzes the growing divide between the incomes of the wealthy class and those of middle-income Americans, exonerating popular suspects to argue that the nation's political system promotes greed and under-representation.
Author: Ron Paul
Publisher: Ludwig von Mises Institute
ISBN: 1933550244
Category : Social Science
Languages : en
Pages : 496
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Book Description
Author: Frank H. Knight
Publisher: Cosimo, Inc.
ISBN: 1602060053
Category : Business & Economics
Languages : en
Pages : 401
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Book Description
A timeless classic of economic theory that remains fascinating and pertinent today, this is Frank Knight's famous explanation of why perfect competition cannot eliminate profits, the important differences between "risk" and "uncertainty," and the vital role of the entrepreneur in profitmaking. Based on Knight's PhD dissertation, this 1921 work, balancing theory with fact to come to stunning insights, is a distinct pleasure to read. FRANK H. KNIGHT (1885-1972) is considered by some the greatest American scholar of economics of the 20th century. An economics professor at the University of Chicago from 1927 until 1955, he was one of the founders of the Chicago school of economics, which influenced Milton Friedman and George Stigler.
