【Macro/Empirical Seminar】Credit Card Regulations and Consumer Debt
2024/12/10
研討會日期 : 2024-12-10
時間 : 14:30
主講人 : Professor Xuan S. Tam (譚玄宋)
地點 : Conference Room B110
主持人 : Professor Tsung-Hsien Li
演講者簡介 : Professor Xuan S. Tam received his Ph.D. in Economics from the University of Virginia in 2010. He is an Associate Professor at the City University of Hong Kong. His research interests are Consumer Finance, Macroeconomics, and Quantitative Methods.
演講摘要 : The unsecured credit market data show that the unsecured debt market has been through some astonishing changes after the Card Accountability Responsibility and Disclosure Act of 2009. In this paper, I use the Survey of Consumer Finances of 2007 to 2019 and find that the total credit lines that the household heads held decreased by 38.5 percent compared with 2007 in 2019. The total credit lines steadily declined using the SCF 2013 and 2016 datasets. During the same period, the average interest rate on the credit card balance that the household heads paid increased by 190 basic points. Using the United States court dataset, The US court data shows that the Chapter 7 bankruptcy filing decreased by 56 percent from 2010 to 2019. The Consumer Financial Protection Bureau report shows that the discharge rate on the general-purpose credit card also dropped by 40 percent over the same period in September 2021. These vital changes in the unsecured credit market show that the Credit CARD Act of 2009 may significantly impact the unsecured credit market and play a crucial role in consumption smoothing and risk sharing in the economy. This paper aims to understand consumption smoothing and welfare implications by forcing financial intermediaries to commit to credit lines.
