CoChat
Sign Up
Cited by 165Financial Literacy, Pension, Retirement AnalysisHousing Market and EconomicsEconomic theories and models

The DOI matches its Crossref record; its reference list is not available.

Household Debt: Facts, Puzzles, Theories, and Policies

Zinman, Jonathan·2015·Annual Review of Economics
DOI 10.1146/annurev-economics-080614-115640
Open this paper in CoChat — free account

Abstract

Borrowing decisions affect most households, with large stakes and implications for research subfields as varied as macroeconomics and industrial organization. I review theoretical and empirical work on household debt: its prevalence, level, growth, and composition, as well as various measures of consumer choice and market (in)efficiency, elasticities, and prices, including new evidence on how borrowing heterogeneity affects the distribution of the opportunity cost of consumption. I also discuss opportunities and challenges in policy evaluation. A key takeaway is that puzzles abound, and I highlight numerous avenues for further research.

Overview

Integrity signals

Registry

Crossref · 10.1146/annurev-economics-080614-115640

Cites

Statistics

Recomputing p-values needs the paper’s full text.

Verification

Claims the paper makes

This paper’s full text isn’t openly available, so its claims and self-check weren’t run. The registry and citation checks still apply.

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

Citations

No citation lists for this paper

No citation lists for this paper yet — checked again daily.

References 179 · Cited by 165

Research works printed but not linked: 145

  1. 10.1257/aer.102.7.3111 · DOI · Paper page
  2. 10.1257/aer.99.1.49 · DOI
  3. Agarwal S, Amromin G, Ben-David I, Chomsisengphet S, Piskorski T, Seru A. 2013a. Policy intervention in debt renegotiation: evidence from the Home Affordable Modification Program . Work. Pap., Natl. Univ. Singapore · DOI
  4. 10.1093/qje/qju037 · DOI
  5. 10.1353/eca.0.0067 · DOI
  6. 10.1111/jmcb.12017 · DOI · Paper page
  7. Agarwal S, Evanoff D. 2013. Loan product steering in mortgage markets . Work. Pap., Natl. Univ. Singapore · DOI
  8. 10.1086/528721 · DOI
  9. 10.1093/qje/qju003 · DOI
  10. 10.1257/app.5.1.193 · DOI
  11. 10.1257/aer.104.12.4205 · DOI
  12. Agarwal S, Rosen RJ, Yao V. 2012. Why do borrowers make refinancing mistakes? Work. Pap. 2013-02, Fed. Reserve Bank Chicago · DOI
  13. Alan S, Cemalcular M, Karlan D, Zinman J. 2015. Unshrouding effects on demand for a costly add-on: evidence from bank overdrafts in Turkey . NBER Work. Pap. 20956 · DOI
  14. 10.1093/rfs/hht029 · DOI
  15. 10.1093/qje/qjr014 · DOI
  16. Andersen S, Campbell JY, Meisner-Nielsen K, Ramadorai T. 2015. Inattention and inertia in household finance: evidence from the Danish mortgage market . Work. Pap., Copenhagen Univ. · DOI
  17. 10.1257/jep.15.3.47 · DOI
  18. 10.1111/j.1468-2354.2008.00485.x · DOI
  19. Ausubel LM, 1991, Am. Econ. Rev., 81, 50
  20. Badarinza C, Campbell JY, Ramadorai T. 2014. What calls to ARMs? International evidence on interest rates and the choice of adjustable-rate mortgages . Work. Pap., Univ. Oxford · DOI
  21. Baker SR. 2014. Debt and the consumption response to household income shocks . Work. Pap., Northwestern Univ., Evanston, IL · DOI
  22. 10.2307/2118364 · DOI · Paper page
  23. 10.1257/app.20140287 · DOI · Paper page
  24. 10.1093/rfs/hhq023 · DOI
  25. Benjamin DJ, 2015, J. Eur. Econ. Assoc
  26. 10.1162/qjec.2010.125.1.263 · DOI
  27. 10.1111/j.1540-6261.2011.01698.x · DOI
  28. Bhutta N. 2014. The ins and outs of mortgage debt during the housing boom and bust . Work. Pap., Board Gov. Fed. Reserve Syst., Washington DC · DOI
  29. Bhutta N, Keys B. 2013. Interest rates and equity extraction during the housing boom . Work. Pap., Board Gov. Fed. Reserve Syst., Washington DC · DOI
  30. 10.1111/jmcb.12175 · DOI
  31. 10.2307/1593693 · DOI
  32. 10.1086/261806 · DOI
  33. Bricker J, 2012, Fed. Reserve Bull., 98, 1
  34. Brown M, 2015, Econ. Policy
  35. 10.1257/jep.23.1.77 · DOI
  36. 10.1257/0002828054825493 · DOI
  37. 10.1016/j.jmoneco.2014.01.005 · DOI
  38. 10.1016/j.jue.2008.07.005 · DOI
  39. Burke K, Lanning J, Leary J, Wang J. 2014. Data point: payday lending . Rep., Consum. Financ. Prot. Bur., Washington, DC · DOI
  40. 10.1162/REST_a_00321 · DOI
  41. 10.1086/524204 · DOI · Paper page
  42. 10.1111/j.1540-6261.2006.00883.x · DOI
  43. 10.1257/aer.101.5.2108 · DOI
  44. 10.1257/jep.25.1.91 · DOI
  45. 10.1257/jep.15.3.23 · DOI
  46. 10.1257/aer.103.2.690 · DOI · Paper page
  47. 10.3982/ECTA9043 · DOI
  48. 10.1162/qjec.122.2.831 · DOI
  49. Cordray R, 2013, Univ. Chic. Leg. Forum, 2013, 1
  50. CU Insight. 2014. 2013 card industry revenue—another downtick . Press Rel. http://www.cuinsight.com/press-release/2013-card-industry-revenue-another-downtick
  51. 10.1162/rest.88.2.348 · DOI
  52. 10.2307/1885064 · DOI
  53. 10.1016/S0047-2727(99)00099-7 · DOI
  54. DeFusco A, Paciorek A. 2014. The interest rate elasticity of mortgage demand: evidence from bunching at the conforming loan limit . Work. Pap. 2014-11, Board Gov. Fed. Reserve Syst., Washington, DC · DOI
  55. Degryse H, Ioannidou V, von Schedvin E. 2012. On the non-exclusivity of loan contracts: an empirical investigation . Work. Pap., Catholic Univ. Leuven, Leuven, Belg. · DOI
  56. 10.1257/jel.47.2.315 · DOI
  57. 10.1162/0033553041382111 · DOI
  58. 10.1257/app.5.4.256 · DOI
  59. 10.1257/aer.20130612 · DOI
  60. 10.1257/jel.48.4.935 · DOI · Paper page
  61. 10.1257/jep.23.4.49 · DOI
  62. Dynan K, Kohn D. 2007. The rise in U.S. household indebtedness: causes and consequences . Work. Pap. 2007-37, Board Gov. Fed. Reserve Syst., Washington, DC · DOI
  63. 10.1016/j.jmoneco.2005.09.001 · DOI
  64. 10.1093/qje/qjs023 · DOI
  65. 10.1257/mic.3.2.114 · DOI
  66. 10.3982/ECTA7677 · DOI
  67. 10.1111/1756-2171.12019 · DOI
  68. 10.1017/CBO9781139052276.007 · DOI
  69. Evans DS, 2005, Paying with Plastic: The Digital Revolution in Buying and Borrowing
  70. 10.1257/mic.2.4.221 · DOI
  71. Farrell KL, 2013, J. Tax. Regul. Financ. Inst., 27, 21
  72. Fedaseyeu V, Hunt R. 2014. The economics of debt collection: enforcement of consumer credit contracts . Work. Pap. 14-7, Fed. Reserve Bank Philadelphia · DOI
  73. 10.1093/qje/qjs020 · DOI
  74. 10.1162/qjec.2006.121.2.505 · DOI
  75. 10.1093/rfs/hhu014 · DOI
  76. Gerardi K, 2010, Econ. Rev, 95, 1
  77. Giné X, Martinez C, Keenan R. 2014. Financial (dis-)information: evidence from an audit study in Mexico. Policy Res. Work. Pap. 6902, World Bank, Washington, DC · DOI
  78. Goldstein I, Razin A. 2013. Three branches of theories of financial crises . Work. Pap., Wharton Sch., Univ. Pennsylvania, Philadelphia · DOI
  79. 10.1093/rfs/15.1.319 · DOI · Paper page
  80. 10.1162/003355302753399472 · DOI · Paper page
  81. 10.1016/j.jpubeco.2011.01.012 · DOI
  82. Guerrieri V, Lorenzoni G. 2012. Credit crises, precautionary savings, and the liquidity trap . NBER Work. Pap. 17583 · DOI
  83. Gurun U, Matvos G, Seru A. 2013. Advertising expensive mortgages . NBER Work. Pap. 18910 · DOI
  84. Hacker JS, 2008, The Great Risk Shift: The New Economic Insecurity and the Decline of the American Dream
  85. 10.1257/aer.101.2.431 · DOI
  86. 10.1257/aer.100.5.2279 · DOI
  87. Hsu J, Matsa D, Melzer B. 2014. Positive externalities of social insurance: unemployment insurance and consumer credit . NBER Work. Pap. 20353 · DOI
  88. Hyytinen A, Putkuri H. 2012. Household optimism and borrowing . Work. Pap., Bank Finland, Helsinki · DOI
  89. 10.1257/jel.50.2.494 · DOI
  90. Justiniano A, Primiceri GE, Tambalotti A. 2013. Household leveraging and deleveraging . NBER Work. Pap. 18941 · DOI
  91. Kanz M. 2013. What does debt relief do for development? Evidence from India’s bailout program for highly indebted households . Policy Res. Work. Pap. 6258, World Bank, Washington, DC · DOI
  92. Karlan D, Osman A, Zinman J. 2014. Follow the money: methods for identifying consumption and investment responses to a liquidity shock . Work. Pap., Yale Univ., New Haven, CT · DOI
  93. 10.1257/aer.98.3.1040 · DOI
  94. 10.1162/JEEA.2008.6.2-3.510 · DOI
  95. 10.1093/rfs/hhp092 · DOI
  96. Karlan D, Zinman J. 2014. Long-run price elasticities of demand for microcredit: evidence from a countrywide field experiment in Mexico . Work. Pap., Yale Univ., New Haven, CT · DOI
  97. Kaufman A. 2013. Payday lending regulation . Work. Pap. 2013-62, Board Gov. Fed. Reserve Syst., Washington, DC · DOI
  98. 10.1162/qjec.2010.125.1.307 · DOI
  99. Keys BJ, Pope DG, Pope JC. 2014. Failure to refinance . NBER Work. Pap. 20401 · DOI
  100. 10.1016/j.jfineco.2012.10.007 · DOI
  101. 10.1257/000282803322655509 · DOI
  102. 10.1257/aer.20110683 · DOI
  103. 10.1515/9780691223933-014 · DOI
  104. Laibson DI, Repetto A, Tobacman J. 2007. Estimating discount functions with consumption choices over the lifecycle . Work Pap., Harvard Univ., Cambridge, MA · DOI
  105. 10.7208/chicago/9780226473062.003.0017 · DOI
  106. 10.1257/aer.100.3.1080 · DOI
  107. 10.1146/annurev-economics-080511-110920 · DOI
  108. 10.1146/annurev-economics-080213-041341 · DOI
  109. 10.1353/eca.2011.0002 · DOI
  110. 10.1257/jep.27.2.97 · DOI
  111. Mann R. 2013. Assessing the optimism of payday loan borrowers . Work. Pap., Columbia Univ., New York · DOI
  112. Marx BM, Turner LJ. 2015. Borrowing trouble? Student loans, the cost of borrowing, and implications for the effectiveness of need-based grant aid . NBER Work. Pap. 20850 · DOI
  113. 10.1257/aer.104.9.2830 · DOI
  114. Mazmuder B, Miller S. 2014. The effects of the Massachusetts health reform on financial distress . Work. Pap. 2014-01, Fed. Reserve Bank Chicago · DOI
  115. 10.1016/j.jebo.2013.05.012 · DOI
  116. 10.1257/app.2.1.193 · DOI
  117. 10.1093/qje/qjt020 · DOI
  118. 10.1257/aer.101.5.2132 · DOI
  119. 10.7208/chicago/9780226277509.001.0001 · DOI
  120. Mian A, Sufi A. 2014b. House price gains and U.S. household spending from 2002–2006 . NBER Work. Pap. 20152 · DOI
  121. 10.3982/ECTA10451 · DOI
  122. 10.1111/jofi.12310 · DOI
  123. 10.1257/jep.22.2.115 · DOI
  124. 10.1257/00028280260344452 · DOI
  125. 10.2307/2109724 · DOI
  126. Ponce A, Seira E, Zamarripa G. 2014. Borrowing on the wrong credit card: evidence from Mexico . Work. Pap., World Justice Proj., Washington, DC · DOI
  127. 10.1093/rfs/hhs072 · DOI
  128. 10.1111/jeea.12104 · DOI
  129. 10.1111/j.1540-6261.1992.tb04661.x · DOI
  130. Skiba P, Tobacman J. 2008. Payday loans, uncertainty, and discounting: explaining patterns of borrowing, repayment, and default . Work. Pap., Vanderbilt Univ., Nashville · DOI · Paper page
  131. 10.1093/acprof:oso/9780195398717.001.0001 · DOI
  132. 10.1111/j.1540-6261.2009.01518.x · DOI · Paper page
  133. 10.1093/rfs/hhq089 · DOI
  134. Stango V, Zinman J. 2014a. Borrowing high vs. borrowing higher: price dispersion, shopping behavior, and debt allocation in the U.S. credit card market . Work. Pap., Univ. Calif., Davis · DOI
  135. Stango V, Zinman J. 2014b. Limited and varying consumer attention: evidence from shocks to the salience of bank overdraft fees. Rev. Financ. Stud. 27:990–1030 · DOI
  136. 10.1162/rest.90.2.241 · DOI
  137. Stiglitz JE, 1981, Am. Econ. Rev., 71, 393
  138. 10.1353/jhr.2008.0016 · DOI
  139. 10.1093/restud/rdt001 · DOI
  140. 10.1146/annurev.financial.050808.114457 · DOI
  141. 10.1093/jleo/14.2.205 · DOI
  142. 10.1257/aer.102.7.3249 · DOI
  143. 10.1111/j.1475-4991.2009.00321.x · DOI
  144. 10.1016/j.jbankfin.2009.08.024 · DOI
  145. 10.1086/676133 · DOI

Metadata

Authors
Zinman, J.
Affiliations
Dartmouth College (US)
Corresponding author
Zinman, Jonathan
Venue
Annual Review of Economics
Publisher
Annual Reviews
Published
2015-08-01
Volume
7
Issue
1
Pages
251-276
ISSN
  • 1941-1383 (ISSN-L)
  • 1941-1391
DOI
10.1146/annurev-economics-080614-115640
OpenAlex
W3124893980
Cited by
165
References
179
Citations by year
2026: 8 · 2025: 12 · 2024: 38 · 2023: 10 · 2022: 8 · 2021: 12 · 2020: 20 · 2019: 9 · 2018: 15 · 2017: 19 · 2016: 7 · 2015: 6
FWCI
11.81
Type
journal article
Language
en
Open access
closed
Locations
  • Annual Review of Economics (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Literacy, Pension, Retirement Analysis
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Housing Market and Economics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
Keywords
household debt, borrowing decisions, consumer choice, market efficiency, debt structure, debt growth, policy evaluation

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review

How to cite

Cite CoChat for the checks on this page, and the paper for its own findings.

This page
CoChat. (2026). Citation check: Household Debt: Facts, Puzzles, Theories, and Policies. https://app.cochat.ai/papers/10.1146/annurev-economics-080614-115640
The paper
Zinman, J. (2015). Household Debt: Facts, Puzzles, Theories, and Policies. Annual Review of Economics. https://doi.org/10.1146/annurev-economics-080614-115640